Research Update: Uzbekistan's National Integrated Oil And Gas Producer Uzbekneftegaz JSC Rated 'BB-'; Outlook Stable

Uzbekneftegaz JSC is a state-owned oil and gas producer in Uzbekistan operating in upstream, refining, and petrochemicals. We expect Uzbekneftegaz's credit metrics to be constrained by its large capital spending (capex) plans, including completion of its gas-to-liquids (GTL) refinery and expansion of its petrochemical operations, which will require additional debt financing. We assess Uzbekneftegaz as one of the most important state-owned corporations for the government of Uzbekistan, which reflects its role as a provider of gas and liquid hydrocarbons at relatively low tariffs to the domestic economy. We have assigned our 'BB-' long-term issuer credit rating to Uzbekneftegaz. The stable outlook reflects our expectation that increasing EBITDA, on the back of GTL ramp-up, should offset anticipated debt build-up to finance

...- Uzbekneftegaz JSC is a state-owned oil and gas producer in Uzbekistan operating in upstream, refining, and petrochemicals. - We expect Uzbekneftegaz's credit metrics to be constrained by its large capital spending (capex) plans, including completion of its gas-to-liquids (GTL) refinery and expansion of its petrochemical operations, which will require additional debt financing. - We assess Uzbekneftegaz as one of the most important state-owned corporations for the government of Uzbekistan, which reflects its role as a provider of gas and liquid hydrocarbons at relatively low tariffs to the domestic economy. - We have assigned our '##-' long-term issuer credit rating to Uzbekneftegaz. - The stable outlook reflects our expectation that increasing EBITDA, on the back of GTL ramp-up, should offset anticipated debt build-up to finance capex and allow the company to maintain funds from operations (FFO) to debt at 13%-18% in the forecast period....

Research Update