TODAY.AZ / Business

‘Nabucco project could impair Romanian Transgaz' credit profile’

08 December 2011 [19:17] - TODAY.AZ
The credit profile of Romanian natural gas transmission operator (TSO) S.N.T.G.N. Transgaz S.A could weaken owing to the company's involvement in Nabucco project, Standard & Poor's Ratings Services said in its statement.

Transgaz is one of the six shareholders in Nabucco gas pipeline project, which is designed to transport gas from the Caspian region and Middle East to the European countries. The gas to be produced during the second stage of Azerbaijani Shah Deniz gas condensate field development is considered as the main source for Nabucco.

The other project's partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Turkish Botas and the German RWE. Each of participants has equal share to the amount of 16.67 percent.

The estimated cost of the project is 7.9 billion euro. The shareholders will invest 30 percent of total cost of the project, the rest 70 percent will be paid owing to loans. "If the project goes ahead, it could substantially impair Transgaz' financial risk profile in the absence of tangible state support," S&P said.

"This will, however, depend on Transgaz' commitment, and the size and type of its potential financing for the project, S&P report says.

At the same time, S&P revised their assessment of Transgaz' stand-alone credit profile (SACP) to 'bb+' from 'bbb-' previously. The revised SACP reflects S&P's view of Transgaz' high exposure to country risk in Romania, because of its monopoly status and concentration of revenues in Romania, and strategic importance within the energy sector.


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URL: http://www.today.az/news/business/99444.html

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