The international rating agency Moody’s has launched a review for downgrade of the credit rating of the Slovenský Plynárenský Priemysel (SPP) gas utility, the agency announced in a press release dated December 17. SPP's rating currently stands at A2.
Moody's cited as the main reason for its review the Slovak government's consent to allow a minority share in SPP currently owned by a consortium of Germanys' E.ON Ruhrgas and France's GDF Suez to be sold to the Czech firm Energetický a Průmyslový Holding (EHP). While the existing minority shareholders enjoy investment-grade credit ratings, EPH is currently unrated by Moody's.
Moody’s also referred to uncertainty over the reorganisation of SPP announced by the government in association with its consent to the sale of the minority stake.
SPP's current rating is partly based on the fact that the firm has a dominant position in the Slovak market for gas.
Source: Moody's Investors Service press release
Compiled by Radka Minarechová from press reports
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19. Dec 2012 at 14:00