Moody's downgrades NET4GAS

Moody's Investors Service said it assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to NET4GAS, sro and lowered the company's senior unsecured debt ratings to Ba2 from Baa2. All N4G's ratings are on review for downgrade. Concurrently, Moody's withdrew the Baa2 long-term issuer ratings, as per its rating agency's practice for corporates transitioning to speculative grade. The outlook remains ratings under review.

“The downgrade of N4G's ratings reflects the company's exposure to the risk of negative credit implications from the severe sanctions imposed on the government of Russia (Ca negative) and certain Russian financial institutions by Western countries which could disrupt the receipt of payments owed to N4G from its main counterparty,” Moody’s said in a press release.

Around 75% of the company’s revenues are generated from transporting gas mostly sourced in Russia.

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