Fitch raises Net4Gas

Fitch Ratings said it raised Net4Gas, sro’s senior unsecured rating to BB+/RR2 from BB/RR4 and the issuer default rating to BB from BB-. The agency also removed the ratings from rating watch positive. The outlook is positive.

The higher IDR rating mirrors the recent 2024 regulatory price decision, which Fitch said it expects will almost double gas transportation revenues compared with 2023, while depressed price prospects for the international gas transit business linger.

The agency said it forecasts tariff decision will boost Net4Gas’ allowed regulatory revenues to about CZK 4.2 billion, higher than its prior forecast of CZK 3.2 billion and the CZK 2.2 billion estimated for 2023.

“The positive outlook reflects the likelihood of support from stronger parent CEPS, as (and indirectly the Czech government) following the completion of its acquisition of Net4Gas. However, we are yet to form a final view on the magnitude of legal, operational and strategic incentives for CEPS to support Net4Gas under our parent and subsidiary linkage rating criteria (PSL),” Fitch said in a press release.

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