Fitch revises OGK-2 outlook to stable

Fitch Ratings said it revised PJSC The Second Generating Co. of the Wholesale Power Market's (OGK-2) outlook to stable from positive, while affirming the long-term foreign-currency issuer default rating at BBB-.

“The outlook revision reflects Fitch's expectations that OGK-2's credit metrics, despite being strong for the next three years, will not qualify for a higher rating following enlarged investment plans for new modernization projects and the expiry of virtually all capacity supply agreements (CSAs) at end-2024. We forecast EBITDA to fall sharply from 2025, resulting in a significant increase in leverage until 2027-2028, when new projects start generating material cash flows,” the agency said in a press release.

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