Moody’s turns eustream outlook to stable

Moody's Investors Service said it changed its outlook for eustream as to stable from negative and affirmed the long-term Ba1 corporate family rating, the Ba1-PD probability of default rating and the Ba1 senior unsecured debt rating. The agency also changed the outlook for SPP Infrastructure Financing BV to stable from negative and affirmed the Ba1 rating on the backed senior unsecured notes backed by eustream.

Concurrently, Moody's affirmed the Baa2 senior unsecured debt and long-term issuer ratings of SPP-distribucia, as. The outlook was changed to stable from negative.

Finally, the agency affirmed the long-term Ba1 CFR, the Ba1-PD probability of default rating and the Ba2 senior unsecured debt ratings of EP Infrastructure, as (EPIF) and changed the outlook to positive from negative.

“The change in outlook to stable primarily reflects eustream's improved liquidity position. Despite lower volumes of Russian gas shipped through eustream's gas transit pipeline since the start of the military conflict in Ukraine, the company has continued to receive capacity payments under the long-term contract with its main Russian shipper. As a result, and in the absence of dividend payments, eustream has accumulated an unrestricted cash position of more than €300 million at year-end 2023, up from an estimated €100 million at the end of March 2022,” Moody’s said in a press release.

For EPIF, the agency noted, “The change in outlook to positive reflects the improved credit quality of EPIF's gas transit subsidiary eustream, which has continued to receive capacity payment since the beginning of the military conflict in Ukraine and has accordingly been building up a larger cash pile which positions it well to address its forthcoming bond maturity in 2025.

“It also reflects EPIF's own improved liquidity position, which Moody's estimates at approximately €900 million at year-end 2023, including cash pooled with its subsidiary EP Energy and an undrawn €400 million revolving credit facility expiring in January 2025.”

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