S&P Global Ratings raised TGC-1 long- and short-term issuer credit ratings to “BBB-/A-3”

20 September 2018

On 20 September 2018, Standard & Poor’s Global Ratings raised its long- and short-term issuer credit ratings on TGC-1 to “BBB-/A-3”. The outlook is stable.

The upgrade to “BBB-” reflects improvements in TGC-1's stand-alone credit profile (SACP) on the back of high capacity payments under capacity supply agreements and debt repayments ahead of schedule, since agency’s expectations that TGC-1 will retain solid credit metrics, prudent financial policy and adequate liquidity management.

Standard & Poor’s Global Ratings experts believe the company should manage any potential new investment projects or higher dividends while maintaining solid credit metrics due to existing headroom in the rating.

The stable outlook on TGC-1 reflects Standard & Poor’s expectations of solid credit metrics on the back of stable operating performance, with funds from operations (FFO) to debt of more than 60%. It also reflects the company as a moderately strategic subsidiary for the Gazprom group in line with the group's investments in other Russian electricity and heat generators.

Currently, this results in no uplift above the company's SACP of “BBB-”, because it is already the same as Gazprom's SACP.


TGC-1 is a leading producer and supplier of electricity and heat in the north-west of Russia. TGC-1 comprises 53 electric power plants within four constituent entities of the Russian Federation: St. Petersburg, the Republic of Karelia, the Leningrad and Murmansk Oblasts.

The installed electric power capacity of TGC-1 is 6.95 GW, heat capacity — 13.65 thousand. Gcal/h. Major Shareholders: Gazprom Energoholding LLC (51.79%) and Fortum Power and Heat Oy (29.45%). The total headcount of the Company and its subsidiaries is about 7 thousand employees.