Moody's lowers Transneft

Moody's Investors Service said it has downgraded to Baa1 from A3 the issuer rating of OAO AK Transneft.

At the same time, Moody's said it has downgraded Transneft's senior unsecured loan participation notes, totaling about $4.4 billion, issued by TransCapitalInvest Ltd., a special purpose vehicle that has issued notes for the sole purpose of financing loans to Transneft, to Baa1 from A3.

The outlook is stable.

Moody's said that the rating action concludes the review for possible downgrade initiated on Dec. 15, due to Moody's decision to review its assessment of the default dependence between Transneft and the Russian government, whose support is factored into the company's rating, in light of the global financial crisis and sharp fall in commodity prices.

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