S&P: Gazprom, units still on watch developing

Standard & Poor's said it kept its BB- long-term corporate credit and senior unsecured debt ratings on OAO Gazprom and related entities on CreditWatch developing following the acquisition of OOO Baikal Finance Group, the winner of the tender for a 76.8% stake in Yuganksneftegas, a former production subsidiary of OAO NK Yukos (CC/Watch Negative/--), by OJSC Oil Company Rosneft.

In a related action, the B ratings on Rosneft were put on CreditWatch developing.

S&P said it is concerned about the potential affect of the acquisition on the financial positions of both entities. It is unclear if the companies would receive any government financial support to offset the increased risks.

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