Moody’s affirms Gas Network Ireland’s A2 credit rating

Moody’s move follows agency’s upgrading of Irish sovereign debt

Analysts have confirmed State company, Gas Networks Ireland’s (GNI) credit rating at A2, it emerged on Tuesday.

The move by Moody’s Investors Service follows the agency’s upgrading of the Republic’s sovereign debt rating to Aa3 with stable outlook from A1 positive, last week.

Moody’s on Tuesday said it had “affirmed” GNI’s A2 credit rating, which means the agency regards the State company as low risk for lenders.

High credit ratings make it easier and cheaper for businesses and organisations to borrow money.

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GNI operates the natural gas supply networks in the Republic and north, along with a key interconnector linking Ireland with Scotland, that supplies large quantities of the fuel. The company has assets of around €2.5 billion.

Natural gas provides more than half the country’s electricity as well as fuelling industry and heating homes.

Moody’s said that it affirmed GNI’s rating on the basis that the company would maintain debt-to-assets ratios, and was subject to consistent price controls and regulation.

The agency also took potential spending to support the Government’s Climate Action Plan into account.

Eamon Ryan, Minister for the Environment, Climate and Communications, says natural gas will be key to aiding the Republic’s transition to low-carbon energy.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas