S&P upgrades CAToil

Standard & Poor's said it raised the long-term corporate credit rating on C.A.T. oil AG (CAToil) to BB from BB-.

The agency also affirmed its B short-term corporate credit rating and raised the Russian national scale rating to ruAA from ruAA-.

The upgrade reflects an expectation that the company will retain healthy credit metrics in the medium term, thanks to its conservative financial policy and growing profits, S&P said.

The agency also said it believes that CAToil should further benefit from growing demand for drilling services in Russia's core oil provinces, which should help increase profits and cash flows. The company's capital expenditures will remain balanced, S&P said.

The business risk profile remains weak, the agency said.

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