Fitch has granted rating to Energo-Pro Georgia
Fitch has granted to Energo-Pro Georgia long-term BB level rating with “stable” forecast. The rating agency states that the ratings are influenced by the monopoly state of the company in Georgia and stability of its owner company.
The company is owned by a utility group ENERGO-PRO. Energo-Pro Group brings together power generation and distribution sites in Czech Republic, Bulgaria, Georgia and Turkey.
Fitch positively assesses relationship between Energo-Pro Georgia and ENERGO-PRO – in 2016, 40% of ENERGO-PRO’s EBITA was the share of its Georgian representation.
EPG is one of the largest distribution companies in Georgia, holding 46% of the market with regard to energy consumption.
The company covers 85% of the entire territory of Georgia.
By the end of 2016, 96% of the debt of the company was denominated in foreign currency (mainly in USD and euro), for which reason Fitch notes that currency fluctuations represent a risk for the company, since it gets incomes in GEL.
In Summer, Energo-Pro Georgia acquired Kakheti energy distribution for 21,7 mln GEL, as a result of which, the market share grew from 60,2% to 54,6% and the company became the only energy supplier beyond the limits of Tbilisi.