S&P: Gazprom, Rosneft developing

Standard & Poor's said it revised its outlook on OAO Gazprom to developing from stable and its outlook on OJSC Oil Co. Rosneft to developing from negative following the Russian government's announcement of its plan to increase its share in Gazprom's shareholding capital by contributing the assets of Rosneft, subject to formal evaluation and regulatory and shareholder approvals.

S&P also affirmed its BB- and B long-term corporate credit ratings on Gazprom and Rosneft, respectively.

S&P said the outlook revisions reflect the lack of certainty affecting both entities as a result of this announcement. Any assessment of the potential impact on Gazprom and Rosneft will depend on the legal and financial details of the transaction, including whether Gazprom would need to make any merger-related payments and whether all or some of Rosneft's assets and liabilities are likely to be transferred to Gazprom.

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