Fitch Ratings upgraded TGC-1's long-term ratings to BBB

Fitch Ratings international rating agency has upgraded TGC-1's long-term foreign and local currency issuer default ratings (IDR) to BBB; Outlook Stable. Fitch has affirmed the company's short-term foreign and local currency IDR at 'F3' and upgraded the priority unsecured rating in local currency to BBB.

The agency noted the company's leading position in the electricity and heat sales market in St. Petersburg and neighbouring regions due to the implementation of CSA projects and a significant share of hydroelectric generation as part of its production assets characterised by low-cost electricity production.

Fitch expects TGC-1 to maintain its strong credit metrics in 2019—2023.

Reference

TGC-1 is a leading producer and supplier of electricity and heat in the North-West of Russia.

TGC-1 comprises 53 power plants within four constituent entities of the Russian Federation: St. Petersburg, the Republic of Karelia, and Leningrad and Murmansk Oblasts. TGC-1's installed electric capacity is 6.95 GW, and heat capacity is 13.75 thousand Gcal/h. Major Shareholders: Gazprom Energoholding LLC (51.79%) and Fortum Power and Heat Oy (29.45%).