S&P: OAO Gazprom unaffected

Standard & Poor's said that the rating on OAO Gazprom (BBB/stable) is unchanged by the company's agreement to acquire a 50% stake plus one share in Sakhalin Energy Investment Company Ltd.

The agency noted it believes Gazprom's strategy is fueled by Russia's policy to strengthen the state presence in the country's strategic hydrocarbon sector.

"At this stage, any negative impact on Gazprom's financial profile is mitigated by the company's strengthening cash flow generation in 2006-2007 and by ongoing and expected extraordinary state support," said S&P credit analyst Elena Anankina.

"Despite large working capital outflow in the second quarter of 2006, Gazprom's profitability is strong on the back of very high gas prices. The company's financials remain compatible with a BB+ category stand-alone assessment and government support provides an additional two-notch uplift for the rating."

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