Moody's downgrades Russian corporates

Moody's Investors Service said it downgraded the ratings of Federal Passenger Co. OJSC, Gazprom Neft JSC, Lukoil OAO, OJSC MMC Norilsk Nickel, OJSC Oil Co. Rosneft, Russian Railways JSC, RZD Capital plc and their supported subsidiaries to Baa3 from Baa2.

It also downgraded Irkut Corp., JSC’s corporate family rating to Ba3 from Ba2 and its probability of default rating to Ba3-PD from Ba2-PD.

The rating action follows the weakening of Russia's credit profile, as reflected by Moody's downgrade of Russia's government bond rating to Baa3/Prime-3 (P-3) from Baa2/Prime-2 (P-2) on Jan. 16 and its placement of the rating on review for further downgrade.

The agency said the ratings of the corporates affected by Tuesday’s announcement remain on review for downgrade because of the current review for downgrade of the sovereign debt rating and the companies' resilience to increased risk arising from the prevailing negative operating conditions.

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