Fitch Affirms FGC Ratings at 'BBB'

Fitch Affirms FGC Ratings at 'BBB'

Fitch Affirms FGC Ratings at 'BBB'

The international rating agency Fitch has affirmed the long-term issuer default ratings (IDRs) in foreign and national currencies of FGC UES (MCX: FEES) at BBB. The outlook for the ratings is “stable”, the agency said in a press release.

FGC's Short-term IDR is affirmed at 'F3'.

“The ratings of FGC take into account the company's strong financial and business profile, its monopoly position in the electricity transmission market in Russia and the rather low risk of a reduction in electricity transmission volumes,” the agency's analysts note.

Fitch continues to assign one additional notch to FGC's own credit rating ('bbb-') in order to align it with the Russian Federation, which controls the company.

FGC owns and manages the power grid facilities of the Unified National Power Grid of the Russian Federation. Electric grid holding Rosseti (MCX: RSTI) owns 80.13% of FGC shares. In turn, Rosseti is 88.04% owned by the state, another 1.28% in the capital – by GazpromFinance BV

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