The rating mainly reflects its solid business profile as a concessionaire and operator of the gas transmission network in Romania, as well as Fitch’s expectation of a progressive contraction of its international gas transit business derived from traditional routes.
Transgaz is the state-owned (58.5%) technical service operator of the Romanian natural gas grid and a European operator in gas-transit services. Transgaz holds monopoly in the domestic gas transmission based on its concession agreement valid until 2032.
The company had a consolidated net profit of RON154 million in the first quarter, down 23% on the year, and operating revenues of RON456 million, down 11%. It has a stock market capitalization of RON3.3 billion.