17 April 2013, 20:14

Standard & Poor's raised rating of Rosneft

нефтяная компания роснефть

The US–based agency Standard & Poor’s (S&P) has raised the rating of the Russian oil company Rosneft. Its credit solvency has been raised to BBB, and the forecasts are stable.

The S&P officials say that they have decided to raise Rosneft’s rating because of the financial policy implemented by the company’s administration. Despite the large volume of works involving the Russian oil company’s merging with the TNK - BP, the Rosneft had enough time to conclude a number of profitable investment projects. The day before, it signed a treaty on the purchase of 14 per cent of shares of the Italian firm Saras, which ranks among the 10 largest oil-processing companies of Europe. This deal will enable Rosneft to increase its presence in this region. Earlier Rosneft confirmed its interest in the construction of a liquefied natural gas (LNG) plant on Sakhalin Island. The U.S. ExxonMobil Company is also taking part in this project.

However, what urged the S&P to raise Rosneft’s rating were not the consequences of the deal with the TNK-BP, Head of the National Energy Security Fund Konstantin Simonov says. "What really mattered here were the Rosneft indices in oil extraction, reserves and profits because the TNK-BP Company was in fact an effectively functioning company. With good dividends, good reserves and promising projects. Rosneft is hopeful that it will achieve further success at the expense of the optimization of spending and integration of projects in the neighbouring regions".

The Rosneft Company unveiled its plans to absorb the TNK-BP Company last October. The relevant agreement was immediately called the “deal of the century” because its net worth was nearly 57 billion dollars. Rosneft planned to pay off the greater part of this sum using borrowed money. Against that background, at that time some experts expressed their fears over the increased debt burden on Rosneft. However, more and more analysts are becoming sure now that the debts of the Rosneft Company are not hampering its dynamic development. President of the Russian Union of Oil Industrialists Gennady Shmal shares this opinion: "With due regard for the purchase of the TNK-BP, the Russian oil company Rosneft is taking first place in oil extraction, which will reach 190 million tons this year. From the point of view of its financial indices and from the point of view of its revenues it is expected to reach the level of the world’s leading oil-and-gas companies. Therefore, I believe that there should be no fears of the existing debts. Although these are big debts, it is necessary to deal with them".

Experts say that Rosneft’s debt reaches nearly 60 billion dollars. Just to compare: the Brazilian Petrobras Company, the largest in Latin America, owes its creditors 96 billion dollars. And as regards Rosneft, should there be any willingness, the company will be able to completely pay off its debt in 10 to 15 years, which is considered to be fast.


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