Fitch: Outlook stable for Russian corporates

Fitch Ratings said it revised the outlooks of six Russian companies to stable from negative and affirmed their ratings following the agency's revision of the Russian Federation's outlook to stable and the affirmation of its long-term foreign- and local-currency issuer default ratings at BBB.

The agency said the rating actions affect:

• JSC Russian Railways, whose ratings are aligned with those of Russia due to its 100% state ownership and strategic importance;

• OJSC Transcontainer, whose ratings reflect the strong strategic and operational ties between itself and its parent, state-owned Russian railway monopoly JSC Russian Railways;

• Sukhoi Civil Aircraft JSC, whose ratings are driven by the strong links to its ultimate majority shareholder, Russia, and the strategic nature of its flagship product, the Super Jet 100, to the state;

• JSC RusHydro, whose ratings are notched down by one notch from the sovereign's due to its state ownership, the strategic importance of the company to the state and a degree of reliance by the company on investment funding from the state;

• OAO AK Yakutskenergo, whose ratings are notched down by three notches from Russia's rating due to state ownership, the strategic importance of the company to the state, direct federal subsidization and its reliance on state-controlled banks for the majority of debt funding and liquidity; and

• OAO Gazprom. The company's ratings are based on its standalone profile, but state ownership and the influence of the state on Gazprom's business environment have an indirect influence on both its financial and business profile, Fitch noted.

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