Fitch assigns Naftogaz positive outlook

Ratings agency Fitch has upgraded the credit outlook for state Naftogaz Ukrainy from 'Stable' to 'Positive' and affirmed the credit rating at 'B'. The rating is tied to that of Ukraine, which is also B/positive, as the company is controlled by Kiev.

Fitch also considered the strategic importance of Naftogaz as Ukraine's largest natural gas production, wholesale and supply company, Naftogaz said August 12.

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There have been  significant changes in the country's gas market that work in Naftogaz' favour, "in particular, the abolition of the public service obligations (PSO) regime. Until May 2021, Naftogaz was obliged to supply gas under the PSO regime, which negatively affected the collectability of receivables."

But the agency warned also of "liquidity strain from high capex in the upstream segment," which would be "increasingly important for the company’s financial profile in the future," Naftogaz said.