The credit rating of PJSC “OGK-2” (hereinafter, OGK-2 or the Company) is based on the Company’s adequate market position due to its successful operations in the electricity and heat generation markets in a number of Russian regions, good business, corporate governance, geographic diversification, and liquidity. Due to the gradual cease of payments to the Company under capacity supply agreements (CSA), an increase in fuel and maintenance costs, the Company’s profitability is decreasing, which results in higher leverage and lower debt coverage. The Company’s standalone creditworthiness assessment (SCA) is also constrained by the size of the Company’s business and regulatory risks, as well as the medium assessment for financial transparency (due to OGK-2’s decision to disclose certain information, including IFRS financial reporting). The credit rating is positively affected by previous measures of support from the Gazprom Group companies and the high likelihood of extraordinary support from PJSC “GAZPROM” (ACRA rating — AAA(RU), outlook Stable; hereinafter, Gazprom), which is the sole shareholder of Gazprom Energoholding LLC.
The credit rating has been downgraded as the Company’s profitability has declined on the back of expiring CSAs, which results in lower assessments of profitability, leverage, and coverage.
OGK-2 is an electric power and heat producer operating in the Krasnodar Krai (ACRA rating — AA-(RU), outlook Stable), Stavropol Krai, Leningrad Region (ACRA rating — AAA(RU), outlook Stable), Chelyabinsk Region (ACRA rating — AA(RU), outlook Negative), Rostov Region, Sverdlovsk Region (ACRA rating — AA(RU), outlook Stable), Pskov Region, Vologda Region, Tyumen Region (ACRA rating is AAA(RU), outlook Stable), Ryazan and Amur Regions, and the Chechen Republic. The Company owns 11 power plants with the total installed electrical and heat capacity of 16.32 GW and 2,960 Gcal/h, respectively.
The key shareholder of PJSC “OGK-2” is Gazprom Energoholding LLC.
key assessment factors
Adequate market position. The Company consists of two thermal power plants and nine regional power plants. The installed electric capacity of the Company is about 6% of the total electric capacity of the Unified Energy System of Russia.
Good business assessment. The price and sales risks of the Company are below medium. The Company is a party to long-term contracts (CSA and generating asset modernization program (KOMMod)) with payback guarantees, and a portion of its revenues from the sale of electricity (around 15%), as well as the sale of heat energy, is generated by tariffs set by the regulator. ACRA notes that the price risk is partially offset by the high level of economic development of the Company’s regions of presence. Supplier risks are assessed as low thanks to long-term agreements concluded with key gas suppliers. Wear and tear of fixed assets is medium.
Good geographic diversification and corporate governance. The Company operates in 12 Russian regions, most of which demonstrate a high level of economic development and therefore the Agency assesses the Company’s geographic diversification as good. The Company is implementing Gazprom’s electric power strategy for 2018–2027. A three-year business plan sets out production and financial and business targets. A plan for a forthcoming year is approved by the Company’s board of directors and financial targets are included in the KPIs of senior management. The Company has a code of corporate governance and a number of related regulations. A full-fledged risk management system is in place, as well as risk management and internal control policies. The financial transparency assessment is medium.
Business size and profitability. The Company’s FFO before net interest and taxes, calculated according to ACRA’s methodology, amounted to 1.591 bps of GDP in 2024 and it is expected to be 0.584 bps of GDP in 2025. The Company’s FFO before net interest and taxes margin amounted to 18% in 2024, and it is expected at 8% in 2025 and then to grow to 12–13%. The increase in the profitability of the Company’s business is based on the assumption that the Company will receive additional funds for extra supplies of electricity due to changes in the settlement mechanism. In case the Company does not receive such funds within the specified period, the credit rating may be revised.
Leverage and coverage. As of January 19, 2026, the Company’s debt was RUB 43.9 bln and consisted of both bank and intragroup loans and exchange-traded bonds. At the same time, the Company has sufficient sources of liquidity to refinance the entire loan portfolio. In 2025 OGK-2 granted a guarantee to a company of Gazprom Energoholding group, which is expected to expire this year. The ratio of the Company’s total debt, including pension obligations, to FFO before net interest amounted to 0.8x in 2024 and it is expected to grow to 3.7x in 2025 and decline to 1.2–1.5x in the future. The ratio of FFO before net interest to interest amounted to 9.5x in 2024 and it is expected to fall to 3.1x in 2025 and further to remain within 2.7–3.7x.
Liquidity and cash flow. As of December 31, 2025, the Company provided a loan of RUB 8.7 bln under market terms to Gazprom’s ruble-denominated cash pooling system. If necessary, these funds can be returned to the Company as soon as it requests. OGK-2 is part of Gazprom’s single treasury system, thanks to which it has access to liquidity. The Company also has available credit limits on loan agreements for a total of RUB 129.8 bln. In 2024, the Company’s free cash flow (FCF) calculated according to ACRA’s methodology remained positive and amounted to RUB 2.9 bln (vs RUB 7.1 bln in 2023) and it is expected to amount RUB -18.7 bln due to dividend payments and capital investments and then enter the positive area again. Current capital investments are used for reconstruction, modernization and technical reequipping in order to increase the reliability of electric power and heat supply equipment. The ratio of investments to revenue was 12% in 2024, and it is expected at 17% in 2025 and further to decline to 6%.
High likelihood of extraordinary support from the key shareholder. The importance of the Company to Gazprom stems from the importance of the electricity sector to its business and the Company’s unique position as the provider of electricity to 12 Russian regions. The Gazprom group has periodically provided loans to the Company, mostly to finance its investment program and refinance previous borrowings. The Company is part of Gazprom’s single treasury and liquidity mechanism.
key assumptions
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Implementation of the capital investment program in 2025–2028 as planned.
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No dividend payments until 2028.
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The Company receiving payments for extra supplies of electricity as declared.
potential outlook or rating change factors
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
- The FFO before net interest and taxes margin exceeding 15% along with the leverage declining below 1.0x and the coverage exceeding 5.0x.
A negative rating action may be prompted by:
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Gazprom losing control over the Company or a weaker relationship between the Company and Gazprom;
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The FFO before net interest and taxes margin declining below 8%;
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The leverage remaining above 2.0x;
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The coverage falling below 2.5x;
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FCF margin declining below -3%;
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Considerable deterioration of access to external liquidity sources.
rating components
SCA: а.
Support: taking into account the degree of support from the supporting entity, the credit rating is determined at 4 notches higher than the rated entity’s SCA.
ISSUE RATINGS
No outstanding issues have been rated.
regulatory disclosure
The credit rating has been assigned to PJSC “OGK-2” based on the following methodologies: the Methodology for Credit Ratings Assignment to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of PJSC “OGK-2” under the national scale for the Russian Federation; the Methodology for Assigning Credit Ratings with External Support to assess factors of external influence; the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions. The principles of the Methodology for Assigning Credit Ratings to Regions and Municipal Entities under the National Scale for the Russian Federation were also applied to assess the economic development of the regions of presence of the rated entity.
The credit rating of PJSC “OGK-2 assigned under the national scale for the Russian Federation was published by ACRA for the first time on February 25, 2025.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on data provided by PJSC “OGK-2”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of PJSC “OGK-2 as of December 31, 2024.
The credit rating is solicited and PJSC “OGK-2” participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to PJSC “OGK-2” during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
