Fitch Affirms & Withdraws YATEC's Ratings
August 5, 2014 Fitch Ratings
Fitch Ratings-Moscow/London-05 August 2014: Fitch Ratings has affirmed OJSC Yakutsk Fuel and Energy Company's (YATEC) Long-term foreign currency Issuer Default Rating (IDR) of 'B-' with Stable Outlook and subsequently withdrawn its ratings. A complete list of rating actions is below.
KEY RATING DRIVERS
Small Regional Gas Producer
The affirmation of YATEC's ratings follows the company's performance being generally in line with our expectations during 2013. YATEC is a small producer of natural gas, gas condensate and oil products located in the Republic of Sakha (Yakutia, BBB-/Stable). Its 2013 production was 1,729 million cubic meters of gas, a mere 0.3% of Russia's total for the year, and 88 thousand tons of condensate.
Improved Leverage, Lower Guarantees
YATEC repaid a RUB3bn domestic bond in full in 2013 and also dramatically reduced the amount of guarantees given to related parties compared with end-2012. Its RUB9bn of gross Fitch-adjusted debt at end-2013 included RUB5.8bn in an off-balance sheet guarantee in favour of a related party, while its net EBITDA leverage was 1.4x, down from 2.1x at end-12.
Fitch has withdrawn YATEC's ratings as the agency no longer has sufficient information to maintain the ratings after YATEC has chosen to stop participating in the rating process. Accordingly, Fitch will no longer provide ratings or analytical coverage for YATEC.
The rating actions are as follows:
Long-Term foreign currency IDR: affirmed at 'B-', Stable Outlook, withdrawn
Long-Term local currency IDR: affirmed at 'B-', Stable Outlook, withdrawn
Short-Term foreign currency IDR: affirmed at 'B', withdrawn
National Long-Term Rating: affirmed at 'BB+(rus)', Stable Outlook, withdrawn
Company — YATEK
Full nameYakutsk Fuel and Energy Company OJSC
IndustryOil and gas