Phoenix Natural Gas Finance Plc- £275,000,000 5.50 per cent. Guaranteed Bonds guaranteed by Phoenix Natural Gas Limited and Phoenix Distribution Holding Limited
We note that Fitch has affirmed Phoenix Natural Gas Limited (PNG) existing ratings. The ratings have been removed from Rating Watch Negative and placed on Negative Outlook. This follows on from the publication of the final determination for the latest PNG price control as published by the Northern Ireland Utility Regulator (Ureg) in September 2016.
Fitch noted "The affirmation reflects our expectation that PNG's financial profile would remain commensurate with the current ratings during the new price control starting in 2017 (GD17)".
"Financial profile improvements would come mainly from the favourable cost of debt adjustment mechanism introduced in the final determinations (FD) and from the shareholders' commitment to modify their distribution policy in order to maintain current ratings"
Fitch stated that a revision of the Outlook to Stable would be possible once they receive full clarity regarding the company's updated business plan.
This information is provided by RNS