S&P lowers four Russian gas companies to negative

Standard & Poor's said it revised the outlooks on Rosneft OJSC, OAO AK Transneft, LUKoil OAO and Gazprom OAO to negative from stable.

The agency also said it affirmed the BBB long-term and A-2 short-term corporate credit ratings on Gazprom,

S&P also said it affirmed the BBB foreign-currency and BBB+ local-currency long-term corporate credit ratings on Transneft.

The agency also affirmed the BBB long-term corporate credit rating on Rosneft and the BBB long-term corporate credit and ruAAA Russia national scale ratings on LUKoil.

The outlook revisions follow the recent revision of the outlook on the Russian Federation to negative from stable, S&P said.

The ratings on Gazprom, Rosneft and Transneft cannot exceed that of their controlling shareholder, the Russian Federation, the agency said.

These are considered government-related entities, S&P said.

The ratings on LUKoil, which is privately owned, are constrained by the long-term sovereign rating because the company is unlikely to withstand a sovereign default, the agency said.

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