Fitch zaps Russian utilities

Fitch Ratings said it lowered several Russian utilities and placed their ratings on rating watch negative.

The downgrades and RWNs reflect the severe shock to the operating environment in Russia and weakened financial flexibility, and follow the agency's downgrade of Russia's sovereign ratings on Wednesday, the agency said.

The agency downgraded Federal Grid Co. of the Unified Energy System PJSC’s long-term foreign-currency and local-currency issuer default ratings to B+ from BBB. The issuer is linked to the sovereign rating as a government-related entity.

Fitch dropped RusHydro’s foreign-currency IDR to B from BBB and its local-currency IDR to B+ from BBB. All its debt is ruble-denominated.

Additionally, the agency lowered PJSC Territorial Generating Co. No. 1’s foreign-currency IDR to B from BBB and its local-currency IDR to B+ from BBB. Fitch said it rates the issuer at the same level as its majority owner Gazprom PJSC.

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