Moody's reviews RussNeft's for downgrade

Moody's Investors Service said it placed on review for downgrade the B1 corporate family rating and B1-PD probability of default rating of RussNeft. RussNeft's outlook was changed to rating under review from positive.

The decision to review RussNeft follows the recent drop in oil prices after the failure to extend the OPEC+ agreement on oil production cuts beyond March 31, which is likely to significantly reduce RussNeft's operating cash flow, leading to a further deterioration in its already weak liquidity.

The review for downgrade will primarily focus on RussNeft's ability to improve and maintain its liquidity amid materially lower oil prices compared with earlier price assumptions, the agency said.

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