S&P lifts Gazprom Neft from junk

Standard & Poor's said it raised the corporate credit rating on JSC Gazprom Neft to BBB- from BB+ after the company publicly confirmed the purchase of a 50% stake in JSC Tomskneft. S&P affirmed the ruAA+ Russia national scale rating.

The outlook is stable.

The upgrade reflects Gazprom Neft's strengthening standalone credit quality because of a more diversified business profile and robust financials, the agency said, as well as greater clarity about Gazprom Neft's financial policy and about the commitment of parent OAO Gazprom (BBB/stable) to expand its oil activities.

Positive factors are somewhat offset by Gazprom Neft's small size and limited diversification relative to most other rated Russian oil companies, the agency noted.

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