Fitch assigns BB+ ratings to TGC-1

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BB+ with stable outlook to PJSC Territorial Generating Co. No. 1 (TGC-1).

The agency also said it assigned a short-term foreign-currency issuer default rating of B, short-term local-currency issuer default rating of B and a BB+ local-currency senior unsecured rating.

The ratings are supported by the company's solid credit metrics, Fitch said.

The agency said it expects that the company will maintain a sound financial profile over 2016 through 2019 despite expected dividend payments, high capital expenditures and expected high rent payments.

The ratings also consider the company's solid business profile with favorable geography of operations, strong market position in electricity and heat sales in St. Petersburg and border regions, Fitch said.

The agency also said it expects weak growth for the Russian economy in 2016 through 2017 and the government's social responsibilities could continue to exacerbate the regulatory and political risks.

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