S&P boosts Gazprom Neft

Standard & Poor's said it raised its corporate credit rating on JSC Gazprom Neft, which is 76% owned by OAO Gazprom (Gazprom, BBB-/stable), to BB+ from BB, following the upgrade of its parent Gazprom.

At the same time, the national-scale rating on Gazprom Neft was raised to ruAA+ from ruAA, S&P noted.

The outlook is stable.

The upgrade follows that of the parent Gazprom, which reflected the increasingly favorable pricing environment, so that Gazprom should in 2006 see evidence of strong free cash flow for the first time, the agency added.

S&P said that the rating action on Gazprom Neft retains the one-notch difference with the parent.

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