Fitch upgrades OGK-2

Fitch Ratings said it upgraded PJSC The Second Generating Co. of Wholesale Power Market's (OGK-2) long-term foreign-currency issuer default rating to BBB- from BB+.

The outlook is stable.

The upgrades reflect the improvement in OGK-2's standalone credit profile to BB+ from BB, reflecting strong credit metrics and expectations that the company will maintain a robust financial profile over 2019 to 2023 with adjusted net leverage of less than 2x, Fitch said.

This is supported by a significant share of EBITDA generated under capacity supply agreements (CSAs), contributing to cash flow stability, the agency said.

OGK-2's financial profile will mainly be driven by capacity payments under capacity supply agreements, which will contribute to more than 90% of its 2019 to 2023 EBITDA, Fitch said.

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