Moody’s changes Gasunie’s credit rating to A2; outlook stable

On July 5th, Moody’s downgraded Gasunie’s credit rating from A1 to A2. According to Moody’s, Gasunie’s investments are increasing due to its ambitious Vision 2030 program. As part of this initiative, Gasunie is investing billions of euros in infrastructure for transporting hydrogen, CO2, heat, and green gas. However, these investments will only yield returns over time.

Additionally, Gasunie’s subsidiary, GTS, generated higher revenues than allowed by regulatory income limits in 2022 and 2023. As a result, GTS will repay these excess earnings to the market through lower tariffs in 2024 and 2025, following standard practice.

Moody’s expects that this will impact the ratio of operating income (FFO) to net debt, falling outside the range typically associated with an A1 rating. Although FFO is expected to recover by 2026, Gasunie’s debt will have increased due to its investment program. The outlook for an A2 rating remains stable, according to Moody’s.