November 8, 2012 / 5:03 PM / in 5 years

Moody's says Gazprom deal positive for PGNiG credit rating

WARSAW, Nov 6 (Reuters) - Poland’s natural gas monopoly PGNiG’s agreement with Russia’s Gazprom on lower gas prices this week is positive for the credit rating of PGNiG, rating agency Moody’s said in a statement on Thursday.

“The settlement with Gazprom will improve PGNiG’s EBITDA in 2012 by at least the 600-730 million euros that Gazprom will pay as part of the agreement,” Moody’s said.

Gazprom on Tuesday gave way in the last of its pricing disputes with big European customers, settling with PGNiG, although it still faces a European Union probe into its supply contracts.

“The scale of future benefits from the lower price will depend on how far PGNiG has to pass its savings through to its final customers,” said Moody‘s.

PGNiG’s chief executive Grazyna Piotrowska-Oliwa said on Tuesday the deal with Gazprom would allow for a reduction in the domestic gas tariff in 2013.

Moody’s rates PGNiG at Baa1 with the rating currently on review for downgrade.

Reporting by Marcin Goettig; editing by Keiron Henderson

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