Fitch gives Czech Gas BBB, notes BBB+

Fitch Ratings said it assigned a BBB issuer rating to Czech Gas Networks Investments Sarl and an expected rating of BBB+ to its proposed senior unsecured notes.

The BBB reflects the company’s solid business profile as a concessionaire (with no expiry) and operator of the largest gas distribution network in the Czech Republic, Fitch said.

The expected BBB+senior unsecured rating is notched up from the issuer rating given the dominant contribution of regulated activities to the group’s EBITDA, which strengthens the recovery prospects for senior creditors, the agency said.

Proceeds will be used for partial prepayment of Czech Gas’ credit facilities.

The outlook is stable. “The stable outlook reflects our expectation of funds from operations (FFO) net leverage of 5.8x on average for 2019-2024,” Fitch said in a press release.

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