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S&P downgrades outlook on Georgian Oil and Gas Corporation

09 March 2016 10:25 (UTC +04:00)

Baku. Vusal Nabiyev – APA-Economics. Standard & Poor's Ratings Services revised the outlook on Georgian Oil and Gas Corporation (GOGC) to negative from stable.

The agency affirmed the long-term corporate credit ratings at 'B+'.

“S&P understands the company is now contemplating increasing its investments in 2016-2017. Having successfully completed construction of the Gardabani thermal power plant in late 2015, GOGC is currently considering investing into an extension of this project, estimated at $200 million-$250 million, and constructing an underground gas storage facility worth another $250 million. This will require increase in debt financing and means that the company might be able to deleverage only if both projects are successfully launched, which will not happen before 2018”, the statement said.