Fitch revises Georgian Oil and Gas outlook to ‘positive’

Global rating agency Fitch Ratings has revised the outlook of JSC Georgian Oil and Gas Corporation's (GOGC) long-term foreign and local currency Issuer Default Ratings (IDR) from stable to positive.

In addition, Fitch Ratings also affirmed the IDRs at 'BB-'.

GOGC officials said improving its rating from stable to positive was very useful for the company’s image and for creating a positive history. GOGC believed the change in ratings would also be useful for creating more resources from the international financial markets in the future, not only for GOGC but for other Georgian companies.

"Georgian Oil and Gas Corporation has state equalled rating. I would remind you that GOGC placed a $250 million USD Eurobond in the London Stock Exchange with a maturity of five years on 9 May 2012,” announced GOGC.

The initial interest rate on the Eurobond was 7.50–7.75 percent, however due to the fact that the demand on the GOGC bond was four times greater, the rate had decreased to 7.125 percent, GOGC stated.

Today Fitch also affirmed a senior unsecured rating on GOGC's $250 million bond, maturing in 2017, at 'BB-'.

Fitch Ratings stated the ratings for GOGC were aligned with the state’s ratings as the Government of Georgia (BB-/positive) considered the company critical to its national energy policy.

Fitch said its revision of the outlook followed similar rating action for Georgia's long-term foreign and local currency IDR. In aligning GOGC's ratings, Fitch considered the 100% indirect state ownership and strong management and governance linkages between GOGC and the state.