“S&P Global Ratings” agency (S&P) assigns BBB+ credit rating to Conexus for the first time

International credit rating agency “S&P Global Ratings” has evaluated natural gas transmission and storage operator “Conexus Baltic Grid” (Conexus) for the first time and assigned rating ‘BBB+’ with stable outlook.

In 2021, Conexus EBITDA reached €33 million. S&P points out in its report that the regulatory framework for the transmission and storage of gas in Latvia is assessed as supporting the sector and offers regulatory transparency until at least 2026.

The S&P assessment also considers the company's increased strategic importance in the context of the parent company AS “Augstsprieguma tīkls” (AST, A-), as well as indirectly in the context of the Latvian government.

Considering the stable AST credit rating, S&P assumes that Conexus will maintain its credit metrics in line with the current rating, maintaining the S&P adjusted funds from operations (FFO) to debt level of 18-23%, and adjusted debt-to-EBITDA* ratio below 5.

S&P is one of the leading international credit rating agencies, which also determines Latvia's sovereign credit rating at international level. The rating agency is following the company's main events, developments and evaluating financial stability.

A credit rating is an assessment of the creditworthiness of a company, region or country. A credit rating is drawn up based on the previous and current financial history of market participants, as well as the assessment of their assets and financial obligations