Fitch: Novatek now negative

Fitch Ratings said it revised OAO Novatek's long-term outlooks to negative from stable.

This follows news that the company's board has approved plans to raise additional debt of up to $1.5 billion to acquire a 25.5% stake in SeverEnergia from Gazprom (BBB/stable) via its 50/50 joint venture called Yamal Development and a 51% stake in Sibneftegas from Gazprombank, the agency said.

Novatek's ratings have been affirmed at long-term foreign and local currency issuer default BBB- and national long-term AA+(rus), Fitch added.

Fitch stated that it views the additional borrowings required to complete the two transactions as increasing the company's financial risk profile beyond that previously envisaged by the agency.

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