S&P: Rosneft, Gazprom still on watch developing

Standard & Poor's said it kept its B corporate credit and senior unsecured debt ratings on OJSC Oil Co. Rosneft and its BB- corporate credit and senior unsecured debt ratings on OAO Gazprom on CreditWatch developing.

S&P said Gazprom and Rosneft remain on CreditWatch following the announcement that the Russian government plans to acquire a direct majority stake in Gazprom in exchange for 100% of Rosneft shares but not including Yugansneftegas (Yugansk).

Yugansk is the former subsidiary of the distressed oil company OAO NK Yukos (D/--/--) and was acquired by Rosneft in December for $9.3 billion. Yugansk will become a separate state-owned company following the government's purchase of the majority stake in Gazprom.

S&P said the CreditWatch reflects the uncertainty concerning Gazprom's and Rosneft's future exposure to liabilities associated with the Yugansk acquisition and the legal and financial details of the Yugansk separation from Rosneft.

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