Azerbaijan, Baku, June 12 / Trend A.Badalova /
Participation of Romanian natural gas transmission operator S.N.T.G.N. Transgaz Medias in Nabucco gas pipeline ptoject presents risk for the company's financial risk profile, Standard & Poor's Ratings Services said in its statement.
"We consider Transgaz's potential participation in Nabucco as an additional material risk for its financial risk profile, albeit currently remote," S&P report says.
S&P placed its 'BB+' long-term foreign and local currency corporate credit ratings on Transgaz S.A. Medias on CreditWatch with negative implications.
S&P expects Transgaz's adjusted debt, which stood at Romanian Lei (RON)146.5 million (EUR32 million ) at year-end 2011, to fall in 2012 and 2013. According to the agency's expectations, Transgaz will resume normalized investment levels by no later than 2014, which, coupled with high dividend payments, is likely to lead to a gradual deterioration in financial credit metrics over the long term.
"Nevertheless, we expect the company's credit metrics to remain solid when compared with peers', with adjusted funds from operations (FFO)-to-debt well above 50 percent. We do not
factor into our base-case scenario the financial impact of Transgaz's participation in the large-scale Nabucco pipeline project, given the continuing uncertainties we see regarding gas supply sources and the financing structure of the project," S&P said.
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.