S&P: Russian oil and gas companies on positive trend

Standard & Poor's said in a report that despite continuing country risks, Russian oil and gas companies are enjoying a generally positive trend.

"With four out of the eight ratings in the sector having positive outlooks and four Russian oil and gas companies currently rated BB+ - LUKoil OAO, OAO Gazprom, OAO AK Transneft and TNK-BP International Ltd. - the key questions are which one(s) could gain investment-grade status, when and for what reason," said S&P credit analyst, Tatiana Kordyukova.

The agency said that LUKoil could be the first Russian oil and gas major to join OJSC MMC Norilsk Nickel at the BBB- level, depending on management's stance on M&A and clarification of its financial policy.

Gazprom is the other likely candidate for an investment-grade rating, with any upgrade depending first on the company's improving its financial profile, the agency added, noting that Transneft's strong business profile and current solid financials would justify an investment-grade rating if not for the uncertainty and massive financial impact of the multibillion-dollar East Siberia-Pacific Ocean oil pipeline.

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