Conexus has decided to no longer determine its credit rating

The unified operator of the natural gas transmission and storage system JSC “Conexus Baltic Grid” (Conexus) has decided to no longer determine the credit rating that is assigned by the international credit rating agency S&P Global Ratings (S&P) based on the company’s ability to continue its development without additional external loans. With this decision, Conexus’ “BBB+” long-term credit rating has been withdrawn.

“By withdrawing the credit rating, we are demonstrating our confidence in the stability of the company. Conexus has high liquidity, which reduces the need to borrow from the financial capital markets. At the same time, the decision not to determine the credit rating allows us to reduce expenses and focus resources on the most important development and growth objectives,” explains Uldis Bariss, Chairman of the Management Board of Conexus.

He adds that due to the cash accrual from storage services revenues from 2021 onwards Conexus has sufficient resources to support the company’s growth and amortise its debt, thus eliminating the need to issue bonds.