Moody’s lowers National Gas bonds to Ba1

Moody's Investors Service said it downgraded National Gas Co. of Trinidad & Tobago's $400 million global bonds due 2036 to Ba1 from Baa3.

At the same time, the agency assigned a Ba1 corporate family rating and maintained the ba1 baseline credit assessment.

The outlook is stable.

These actions were triggered by Moody's April 25 downgrade of the Government of Trinidad & Tobago’s bond ratings to Ba1 from Baa3 with a stable outlook, although Moody's said it believes that the company's liquidity and credit metrics, already solid for its rating category, will improve in 2017 and 2018 from 2016 given strict cost controls and better prices for methanol and ammonia, which will positively affect operating margins and cash flow generation.

In addition, the agency expects that National Gas and the government will remain committed to maintaining the company's solid balance sheet, avoiding increase in debt to transfer funds to the government.

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