Standard & Poor’s have today issued a research update where the Njord Gas Infrastructure AS’ bond ratings are lowered by one notch from BB to BB-. The BB- rating carries a Stable Outlook and a recovery rating of ‘1’.
In the ratings review, Standard & Poor’s state that the downgrade is due to the significant weakening of the Norwegian Krone which resulted in lower tax payments in 2014-2015 that will be offset by higher future tax payments.
Standard & Poor’s improved the operation phase business assessment (OPBA) from 5 to 4 to reflect the project resilience under a market downside scenario, and further states:
— “The BB- long term rating continues to reflect the weak financial profile forecast for NGI as a result of tariff revisions announced by the Norwegian Ministry of Petroleum and Energy on June 27, 2013. The ratings also reflect our view of the project’s significant cash resources, which support our belief that the project will be able to meet its debt service needs even though its ADSCRs, calculated according to our criteria, are forecast to fall below 1x in 2021-2027.”
Dated: 3 December 2015
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:
Jarle Joa, Finance Director
+47 4021 9488 (mobile)