S&P: Rosneft on watch

Standard & Poor's said it placed the BBB- long-term issuer credit rating on OJSC Oil Co. Rosneft on CreditWatch with negative implications.

The CreditWatch placement follows news by Rosneft that it intends to negotiate the purchase of a 50% stake in Russian oil company TNK-BP International Ltd. from BP plc, S&P said.

If the acquisition proceeds, it could significantly weaken Rosneft's financial risk profile by putting pressure on the rating, the agency said.

S&P said it understands that there is no guarantee that the transaction will proceed.

Rosneft's has a stand-alone credit profile of BBB- on the basis of the company's intermediate financial risk profile and satisfactory business risk profile, the agency said.

S&P also said it treats Rosneft as a government-related entity with a moderately high likelihood of extraordinary government support.

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