Fitch lowers Russneft to CCC+

Fitch Ratings said it downgraded Russneft to CCC+ from B.

“The downgrade of Russneft reflects its worsened liquidity position and recent transactions with companies affiliated with Russneft's main shareholder that have increased its Fitch-adjusted leverage. The latter has cast doubt on Russneft's corporate governance practices,” said Fitch in a press release.

The agency projects Russneft to generate moderately positive free cash flow, which however will be insufficient to cover maturities under the current repayment schedule. Its ability to attract external funding is constrained by its loan agreement with its major creditor, VTB.

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