Fitch upgrades Sinek

Fitch Ratings said it upgraded OAO Svyazinvestneftekhim's (Sinek) long-term foreign-and local-currency issuer default ratings to BBB from BBB- and affirmed the short-term foreign-currency issuer default rating at F3.

The outlook is stable.

The upgrade follows the upgrade of the Republic of Tatarstan, Fitch said.

The agency also said it upgraded the foreign-currency senior unsecured rating on Edel Capital SA's $250 million loan participation notes due 2015 to BBB from BBB-. The notes are guaranteed by Sinek and Tatarstan.

The ratings are linked to the sub-sovereign rating of the Tatarstan given the republic's significant influence over the company, Fitch said.

Direct support from the republic includes the government's explicit guarantee of the $250 million notes, a $33 million loan and significant contributions-in-kind historically made by the republic, the agency said.

Sinek's business and financial profile are largely constrained by the company's reliance on a dividend stream from a portfolio of non-investment grade companies, Fitch said.

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