S&P Global Ratings Affirms the Rating of TGC-1 as BBB-, Outlook Stable

01 October 2020

On 29 September 2020, Standard & Poor’s Global Ratings affirmed credit ratings on TGC-1 to “BBB-”, with the Stable Outlook.

The stable outlook indicates that the agency expects TGC-1's stable operating performance to support solid credit metrics.

Agency estimated possible reduction in EBITDA of TGC-1 in 2020-2021, due to gradual expiration of capacity supply agreements. Still, capacity revenue will remain a solid and stable contributor to EBITDA (its share is between 70% and 80%), that is an inherent benefit of the Russian electricity market.

Although TGC-1's operating cash flow is set to decline, the agency believes it should be sufficient to cover the company's moderate capex.

As a positive factor, the agency notes the company's relative resilience to COVID-19 impacts and economic recession in Russia.

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 (part of the Gazprom Energoholding Group) is a leading producer and supplier of electricity and heat in the North-West of Russia. TGC-1 comprises 52 power plants within four constituent entities of the Russian Federation: St. Petersburg, the Republic of Karelia, and Leningrad and Murmansk Oblasts.

TGC-1 installed electric capacity of the Company’s stations amounts to 6.9 GW and heating capacity of 13.5 thous. Gcal/hr. Major shareholders are Gazprom Energoholding LLC (51.79%) and Fortum Power and Heat Oy (29.45%).