Fitch: Nord Stream-2 increases Gazprom’s risks

The rating agency Fitch has stated that Gazprom may face commercial challenges and difficulties in attracting funding in connection with the decision to extend the Nord Stream gas pipeline. These factors may affect the implementation of the project and significantly increase the leverage of Gazprom, if it has to directly involve funding for the project.

At the same time, additional debt is unlikely to affect the rating of Gazprom of "BBB-", as the company's rating is limited by the sovereign rating. In the absence of this restriction the rating of Gazprom would probably be in the middle of the rating category "A" in view of its position as the largest exporter of natural gas to Europe and very strong current balance, the press release of Fitch emphasizes.