Creditworthiness assessment
To demonstrate their financial strength and viability as a shipper, to the extent required by Trans Adriatic Pipeline’s Gas Transportation Agreement, organisations applying to become registered parties must undergo a creditworthiness assessment to establish their credit limit.
To control its exposure to credit risk, TAP has developed a credit risk management approach that establishes, monitors and updates shippers’ credit limits. TAP’s approach is non-discriminatory, transparent and proportionate, and aims to give TAP sufficient confidence in each registered party’s financial strength.
Any company applying to become a registered party must undergo a creditworthiness assessment in order to be allowed to book capacity. This requires them to meet one or more of the following criteria in accordance with section 4 of the TAP Network Code:
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Credit rating from an agency
A credit rating from an approved credit rating agency that is equal to or higher than the minimum credit rating.
Please provide the three most recent financial statements as well as the latest credit rating report (if more than one, please provide all the credit rating reports).
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Provision of a rated entry guarantee
Either provision of the rated entity guarantee from an affiliated company;
- Please provide the three most recent financial statements as well as the latest credit rating report (if more than one, please provide all of the credit rating reports) of the affiliated company.
- please fill in the form rated entity guarantee for the affiliated company
or provision of rated entity guarantee from a financial institution
- Proof that financial institution has at least the minimum credit rating
- Please fill in the form for the rated entity guarantee from a financial institution
- In case where the rated entity guarantee from a financial institution has an expiration date, the applicant shall provide the confirmation of form of rated entity guarantee with an expiry date
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Minimum credit limit payment as cash collateral account
Paying at least the minimum credit limit as cash collateral account.
Bank Name
MUFG Bank, Ltd.
Branch Name
London Branch
Account Name
CASH COLLATERAL
SWIFT BIC
BOTKGB2L
IBAN
GB41BOTK60010900104083
If successful, registered parties will be assigned a credit limit within which they can book capacity.
The parameters applicable to credit calculation can be found below.
Credit Limit Percentage | ||
Entity | Minimum Credit Rating* | >Minimum Credit Rating |
Registered Party | 5% | 10% |
Rated Entity Guarantor | 1.25% | 2.5% |
Minimum Credit Limit in Euro** | 10,000 | |
Credit Multiplier | 5% | |
* Minimum Credit Rating means in respect of S&P or Fitch, BBB- or in respect of Moody's, Baa3 and any other Approved Credit Rating Agency published from time to time on TAP’s website.
** Minimum Credit Limit in Euro is the minimum amount a party needs to provide in order to complete the registration process. The purpose of the registration process is to allow companies to book capacity in TAP and this credit threshold is set up to allow a small, yet meaningful credit limit defining how much capacity can be booked on the PRISMA platform.
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