Fitch Ratings has affirmed JSC Georgian Oil and Gas Corporation's (GOGC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Negative Outlook and simultaneously withdrawn the ratings. A full list of ratings actions is below.
The affirmation reflects our expectation that GOGC will be able to deleverage to within our rating sensitivities from 2022 on improved EBITDA from the electricity generation segment, following an expected leverage spike in 2021. The rating is also supported by GOGC's monopoly in oil and gas transportation in Georgia and the company's role as the state's agent in the power sector.
The Negative Outlook mirrors that of Georgia (BB/Negative), as per Fitch's Government-Related Entities (GRE) Rating Criteria. Fitch rates GOGC by applying a one-notch uplift to Its Standalone Credit Profile (SCP) of 'bb-' to arrive at the same rating as Georgia, the ultimate source of potential support to the company.
The ratings have been withdrawn for commercial reasons. Fitch will no longer provide ratings or analytical coverage of GOGC.
