MOSCOW, March 17 (RIA Novosti) - International rating agency Standard & Poor's said Friday it had assigned Novatek, Russia's largest independent gas producer, a BB- long-term corporate credit rating and Russia national scale rating ruAA- with a stable outlook.
The agency said its ratings reflected Novatek's dependence on the pipeline network owned by Russian energy giant Gazprom, along with the gap between prices for natural gas sold on the domestic and international markets and domestic risks, including tax and regulatory uncertainties.
Novatek's good credit profile is based on its high profitability and its expected positive mid-term cash flow due to very low expenses, the agency said.
Novatek is Russia's second biggest natural gas producer after Gazprom. According to preliminary company data for 2005, its natural gas production stood at 25.2 billion cubic meters, while liquid hydrocarbons (oil and gas condensate) production reached 2.6 million metric tons.
