Fitch Rates Romanian Romgaz's Proposed Notes 'BBB-(EXP)'

Fitch Ratings Limited (“Fitch”) has assigned S.N.G.N. Romgaz S.A.'s (BBB-/Stable) proposed notes an expected 'BBB-(EXP)' senior unsecured rating. Fitch has also assigned Romgaz's Euro Medium Term Note (EMTN) programme an expected 'BBB-(EXP)' senior unsecured rating. The assignment of the final ratings is contingent on the receipt of final documentation conforming to information already reviewed.

Romgaz's Long-term Issuer Default Rating (IDR) of 'BBB-' benefits from a one-notch uplift from its 'bb+' Standalone Credit Profile (SCP) for state support, under our Government-Related Entities (GRE) Rating Criteria.

The SCP reflects Romgaz's dominant position in Romania's natural gas market, upstream production growth potential from its Neptun Deep and Caragele reservoir developments and a conservative financial policy. Key rating constraints include its comparatively modest production scale, lack of geographic diversification due to its sole focus on Romania, its aging legacy gas assets, large capex and execution risk.

More details about the rating action commentary are available at: https://www.fitchratings.com/research/corporate-finance/fitch-rates-romanian-romgaz-proposed-notes-bbb-exp-23-09-2024