Fitch upgrades Transgaz's rating to 'bbb' with a stable outlook, due to financial performance.

The Fitch rating agency announced a revision of the Independent Credit Profile (SCP) of Transgaz, upgrading the rating from 'bbb-' to 'bbb', with a stable outlook. This upgrade reflects an average net debt to funds from operations (FFO) ratio of 3.1x for the period 2026-2028, below the positive sensitivity threshold of 4x associated with the previous rating. Additionally, a sustainable increase in EBITDA is expected, following a comprehensive capex program planned for 2024-2025. Free cash flow (FCF) is estimated to be less negative, averaging approximately minus 210 million lei during the same period.

After the completion of the Black Sea-Podisor interconnection project, execution risks have been reduced, which could improve EBITDA estimates. Transgaz's rating is one notch higher than Romania's sovereign rating, and any negative action on the country's rating could also affect the company's rating. Transgaz is the technical operator of the National Natural Gas Transport System, responsible for ensuring efficiency and transparency in gas transportation.