Uzbekneftegaz Outlook Revised To Negative On Covenant Breach And Revised Likelihood Of Government Support - S&P Global Ratings’ Credit Research

Uzbekneftegaz Outlook Revised To Negative On Covenant Breach And Revised Likelihood Of Government Support

Uzbekneftegaz Outlook Revised To Negative On Covenant Breach And Revised Likelihood Of Government Support - S&P Global Ratings’ Credit Research
Uzbekneftegaz Outlook Revised To Negative On Covenant Breach And Revised Likelihood Of Government Support
Published Nov 29, 2023
5 pages (2545 words) — Published Nov 29, 2023
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About This Report

  
Abstract:

According to its first half 2023 financial statements, Uzbekneftegaz JSC (UNG) breached some of its financial covenants without obtaining waivers from creditors before the reporting date, which led to an event of default. Although the waivers were obtained soon after the reporting date and no default ultimately occurred, we believe there are deficiencies in the company's internal controls and risk management, which lead us to lower the stand-alone credit profile on UNG to 'b' from 'b+'. We also think the weak internal controls may prevent UNG from communicating its need for support to the government in a timely manner, leading us to reassess the likelihood of extraordinary government support to high from extremely high. We therefore revised the outlook on

  
Brief Excerpt:

...November 29, 2023 - According to its first half 2023 financial statements, Uzbekneftegaz JSC (UNG) breached some of its financial covenants without obtaining waivers from creditors before the reporting date, which led to an event of default. - Although the waivers were obtained soon after the reporting date and no default ultimately occurred, we believe there are deficiencies in the company's internal controls and risk management, which lead us to lower the stand-alone credit profile on UNG to 'b' from 'b+'. - We also think the weak internal controls may prevent UNG from communicating its need for support to the government in a timely manner, leading us to reassess the likelihood of extraordinary government support to high from extremely high. - We therefore revised the outlook on UNG to negative from stable and affirmed the 'B+' ratings on the company and its debt. - The negative outlook reflects that we could lower the rating on UNG in the next 12 months if continued underperformance,...

  
Report Type:

Ratings Action

Issuer
Uzbekneftegaz JSC
Sector
Global Issuers
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Uzbekneftegaz Outlook Revised To Negative On Covenant Breach And Revised Likelihood Of Government Support" Nov 29, 2023. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Uzbekneftegaz-Outlook-Revised-To-Negative-On-Covenant-Breach-And-Revised-Likelihood-Of-Government-Support-3095567>
  
APA:
S&P Global Ratings’ Credit Research. (). Uzbekneftegaz Outlook Revised To Negative On Covenant Breach And Revised Likelihood Of Government Support Nov 29, 2023. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Uzbekneftegaz-Outlook-Revised-To-Negative-On-Covenant-Breach-And-Revised-Likelihood-Of-Government-Support-3095567>
  
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