S&P assigns Rosneft program BB+

Standard & Poor's said it assigned its BB+ senior unsecured debt rating to the proposed $15 billion MTN program registered by Rosneft Capital SA, a financing vehicle of OJSC Oil Company Rosneft (BB+/positive).

At the same time, a BB+ senior unsecured debt rating was assigned to the proposed first notes issue under the program, which the company expects to make in July, the agency said.

S&P noted that the debt ratings mirror the corporate credit rating on Rosneft, adding that noteholders will effectively face Rosneft's credit risk because the issuer's payment obligations are secured by all Rosneft's payments under the loan agreement and because Rosneft Capital assigns all its rights under the loan agreement to the trustee.

The agency added that the ratings on Rosneft are supported by its high-quality asset base, with vast reserves, large and growing production and significantly improved integration into refining after its recent acquisitions at the Yukos bankruptcy auctions.

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