S&P ups Gazprombank view to positive

Standard & Poor's said it revised its outlook on Gazprombank to positive from stable following the outlook revision to positive from stable on Gazprombank's parent, OAO Gazprom (BB-/positive/--).

The B+/B long- and short-term counterparty credit and the ruA+ Russia national scale credit ratings on the bank were affirmed.

S&P said the outlook revision on Gazprom on July 12 was based on the increased support that might result from the government's direct majority control over the company, favorable international gas prices for 2005 and beyond, and gradually increasing domestic gas prices.

The ratings on Gazprombank are supported by the bank's strategic importance to the Gazprom group, adequate capitalization, and good liquidity, S&P said. The ratings remain constrained by the bank's significant exposure to the Gazprom group and its weak earnings structure, as well as the risks associated with operating in the risky environment prevailing in the Russian Federation.

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