Moody's assigned a Ba2 Corporate Family Rating to the subsidiary of Russian natural gas giant Gazprom [RTS: GAZP] with a stable outlook, while Fitch assigned the company an Issuer Default rating of BB with stable outlook, and a short-term B rating.
Moody's noted "the company's dominant or leading market share in a number of products, supported by the absence of similar-sized domestic competitors."
Sibur said in a news release that the agencies praised its efforts to substantially increase output, and the strong diversity of its products.
"The ratings are further supported by Sibur's considerably improved operational profitability and positive free cash flow generation since FY05," Fitch said. "The group is well diversified with more than 100 products while its exposure to individual customers remains moderate."
Sibur said in its news release that it would continue its policy toward transparency and financial stability.
"The international rating assignment paves the way for the company to enter loan markets if necessary," the news release quoted Sibur President Dmitry Konov as saying.
"It provides an unbiased assessment indicator for Sibur's efforts to introduce advanced standards of corporate and financial management," he said.
Sibur Holding, which has authorized capital of 40.1 billion rubles ($1.5 billion), was established in December 2005 after Gazprom announced it would reorganize the Sibur joint stock company into a holding as a final step in the reorganization of the petrochemicals business.
Gazprom bought 25% plus one share in Sibur Holding, and its financial arm Gazprombank bought 75% minus 1 share, giving the energy giant 100% ownership.
