S&P: Seven Russia-based issuers on positive watch

Standard & Poor's said it placed seven Russia-based government-related entities in the energy, transport and financial sectors on CreditWatch with positive implications following a review of government influence on GREs in Russia.

The seven are: Federal Grid Co. of the Unified Energy System, OAO GazpromGazprombank, OJSC Oil Company Rosneft, Russian Bank for Development, Russian Railways (JSC) and OAO AK Transneft.

The CreditWatch listings will be resolved over the next several weeks, following reviews of the risks and benefits of links to the Russian Federation (foreign currency ratings BBB+/stable/A-2, local currency ratings A-/stable/A-2), as well as other relevant credit quality factors, the agency said.

The Russian government has been proactive in strengthening the position of a number of GREs, resulting in some having gained potential benefits and privileged positions, S&P noted, adding that the relative benefits of government influence vary among GREs in Russia based on their economic, social and political roles and the extent to which they are expected to enjoy a favorable legal, regulatory and investment environment and access to extraordinary support in the event of distress.

Affected ratings include Federal Grid's corporate credit rating at B+ and Russia national-scale rating at ruA+, Gazprom's corporate credit rating at BBB-, Gazprombank's counterparty credit rating at BB+ and Russia national-scale rating at ruAA+, Rosneft's corporate credit rating at BB, Russian Bank for Development's issuer credit rating at BBB, Russian Railways' corporate credit rating at BBB- and Russia national-scale rating at ruAA+ and Transneft's corporate credit rating at BB+.

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