S&P affirms Rosneft on acquisition

S&P said it affirmed its BB+ long-term corporate credit rating on Russia's Oil Co. Rosneft OJSC.

The outlook is stable.

S&P said the affirmation reflects its view that Rosneft's credit metrics will not weaken materially after its acquisition of Bashneft. A 50% stake in Bashneft was sold to Rosneft for RUB 330 billion (about $5 billion).

The agency said it takes into account the possibility that Rosneft will have to do a mandatory buyout of minorities, which could require additional cash outlays.

But even so, S&P thinks that Rosneft will maintain funds from operations (FFO) to debt of not less than 20% on average in the next three years.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.