S&P trims EP Infrastructure

S&P said it trimmed its ratings on EP Infrastructure (EPIF) and its debt to BBB- from BBB and placed them on CreditWatch with negative implications.

“We believe that the ongoing Russia-Ukraine conflict has heightened risks for eustream, the Slovak gas transmission operator (TSO) 49% owned by Czech multi-utility company EP Infrastructure (EPIF); the subsidiary contributes 34% of EPIF's proportionate, adjusted EBITDA,” S&P said in a press release.

“Although Europe is proactively looking to reduce its dependency on Russian gas and secure supply, we believe that an immediate cessation of Russian gas imports would be against the economic interests of both Europe and Russia. In a scenario of partial reduction of Russian gas flow, eustream is better positioned than other routes because its route is less costly and supplies the large Italian market,” the agency said.

S&P said it plans to resolve the negative watch within 90 days, once it has more clarity on the full macroeconomic repercussions of the sanctions against Russia and its related entities and the evolution of the geopolitical conflict.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.