Fitch alters EP outlook to negative

Fitch Ratings said it removed EP Infrastructure as’ (EPIF) ratings from rating watch negative and assigned a negative outlook. The agency also affirmed EPIF’s BBB- ratings.

“Fitch's base scenario now incorporates full or near-complete shut off of Russian pipeline gas to Europe and no payments from Gazprom. We now base our analysis on EPIF's infrastructure capacity to carry alternative flows and thus receive capacity bookings to service demand nationally and from neighboring eastern European countries,” the agency said in a press release.

The outlook reflects uncertainties over the scale of alternative gas transits, the risk of over-hedging, and shareholder willingness to structurally deleverage below historical management targets and consistently with the agency’s revised rating sensitivities, Fitch said.

© 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.