Fitch affirms Transgaz at ‘BBB-‘ with stable outlook

Fitch Ratings has affirmed the Romanian gas transport system operator Transgaz Long-Term Issuer Default Rating (IDR) at ‘BBB-‘ with a stable outlook and assigned a Standalone Credit Profile (SCP) of ‘bbb-‘.

The rating affirmation reflects Transgaz’s solid business profile as the concessionaire and operator of the gas transport network in Romania, which Fitch perceives as broadly unchanged following the recent addition of Moldova’s gas TSO operations, as well as the expectation of regulatory continuity into the new five-year regulatory period (RP5), whose start has been postponed by one year to October 2025.

“We expect funds from operations (FFO) net leverage to gradually fall over 2024-2027 and to remain comfortably positioned within our rating sensitivities despite Transgaz’s growing investment ambitions. This is aided by an expected early return recognition for its Black Sea-Podisor investments and a favourable inflationary effect on its regulatory asset base (RAB). However, debt-funded investment for the capacity expansion to Hungary above the current 3 bcm/year assumption could result in higher-than-expected leverage,” a release shows.