Standard & Poor’s modified the prospect of the ‘BB+’ rating of Transgaz (TGN) from “stable” to “negative” and anticipates that, in the future, it might also lower the rating of the company, because of the uncertainty regarding the regulation and the pressures put by the government on the dividend policy. The rating agency considers authorities’ decision to revise the salary policy of Transgaz as “premature” and able to induce “important regulation risks in a country where this does not depend on the government.” Furthermore, S&P warns that the financial situation of the company might be affected by the government’s pressures and expectations for “significant dividends.” “(…) Transgaz wants to balance the higher dividends by curbing capital expenses (the investment budget) on a medium term. We believe that this is a difficult target, given the significant investments needed for modernising the Romanian gas transit grid. As a consequence, there is the risk of a long-term deterioration of the credit situation, otherwise sound in a historic perspective,” S&P explains. According to the agency, the rating of Transgaz might be lowered by more than one step if the uncertainty that affects the regulatory area will continue, or if “a substantial deterioration of the wage policy” occurs. S&P currently rates Transgaz ‘BB+’ for loans in the local currency, same as the rating granted to the Romanian government, as it considers that the state would timely and adequately intervene if the company runs into financial trouble.