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    S&P Downgrades Major Russian Corporations Including Gazprom

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    In particular, the agency downgraded the foreign currency ratings of Russia's energy giant Gazprom, telecom operator MegaFon, and railroads company Russian Railways from BBB- to BB+.

    MOSCOW (Sputnik) — Standard & Poor's ratings agency said Wednesday it had taken various rating actions on major Russian corporations following the recent downgrade of Russia's sovereign rating from BBB- to BB+ or 'junk' status.

    "We have reviewed our ratings on Russian corporations in the commodity exports, telecommunications, and infrastructure and utility sectors. We are consequently lowering our ratings on 14 companies and subsidiaries, affirming the ratings on 10 companies and subsidiaries, and revising several outlooks to negative" S&P said in a statement.

    In particular, the agency downgraded the foreign currency ratings of Russia's energy giant Gazprom, telecom operator MegaFon, railroads utility Russian Railways from BBB- to BB+.

    Other corporations affected by various downgrades include Rosneft, Gazprom Neft, Transneft, Novatek and MTS.

    Earlier this month, S&P lowered Russia's sovereign ratings to "junk" status from a "good" BBB- to a "speculative" BB+ with negative outlook. Two other rating agencies, Fitch and Moody’s also downgraded Russia's government bond rating.

    Many experts have argued that the so-called “big three” comprising S&P, Moody’s and Fitch have made biased judgments basing them on the geopolitical situation.

    The Chinese Dagong Global rating agency, in turn, has given Russian energy giant Gazprom this week the "AAA" long-term issuer credit rating for both local and foreign currencies, with a stable outlook.

    Related:

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    Kremlin Spokesman Slams S&P Move to Lower Russia’s Credit Rating as Biased
    S&P Junking of Russia Rating ‘Meaningless, Inaccurate’
    Tags:
    Rosneft, Gazprom, S&P, MegaFon, Russian Railways, MTS, Gazprom Neft, Novatek, Transneft, Russia
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