In reference to announcements made on 15 and 21 January 2013, Standard & Poor’s have today issued a research update where the Njord Gas Infrastructure AS’ (‘NGI’) bond ratings are lowered by one notch from A- to BBB+. The ratings remain on CreditWatch negative in response to the proposed reduction in Gassled tariffs.
In the ratings review, Standard and Poor’s state: “We are lowering our long-term issue ratings on the bonds issued by NGI due to the continuing lack of transparency in the process launched by the Norwegian Ministry of Petroleum & Energy (‘MPE’), and the impact this has on our view of the future stability and predictability of the regulatory regime.”
Standard and Poor’s further state: “The continuing CreditWatch placement reflects our view of the potential impact on the project’s financial profile of the proposed reduction in tariffs by the MPE. We aim to resolve the CreditWatch placement following finalization of the tariff structure by the MPE. We could remove the ratings from CreditWatch and affirm them if the MPE does not proceed with its current proposal, or if the final tariff reduction is substantially less than currently proposed, resulting in a financial profile that is in line with our previous projections. We would lower the ratings, likely by more than one notch, if the MPE proceeds with its current proposed reduction in tariffs. We could also lower the ratings by one or more notches if the MPE introduced lower tariff reductions, significant enough to result in a weaker financial profile than we previously forecast.”
— Dated: 2 May 2013 Njord Gas Infrastructure AS
The information in this announcement is subject to the disclosure requirements of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs – Continuing Obligations.
Njord Gas Infrastructure AS is headquartered in Stavanger, Norway. It invests in Norwegian gas infrastructure and currently holds an 8.036% participating interest in Gassled. For more information, please refer to http://njordgasinfra.no/.
For information, please contact:
Birte Norheim, Finance Director +47 51911064 office +47 95293321 mobile