S&P upgrades Sibneft

Standard & Poor's said it raised its long-term corporate credit ratings on OAO Siberian Oil Co. (Sibneft) to B+ from B and raised its Russia national scale rating on Sibneft to ruA+ from ruA-.

The outlook is stable.

S&P said the rating actions reflect S&P's opinion that Sibneft has demonstrated itself to be reasonably distant from the challenges faced by troubled oil company OAO NK Yukos (D/--/--) after Yukos transferred its 57.5% stake back to Sibneft's core shareholders and reduced its holding from 92.0% to 34.5%.

Yukos and its creditors have no access to Sibneft's management and cash flows. The return of Sibneft's stock in October 2004 followed the invalidation of Yukos' stock issue, and did not involve any cash compensation, which is positive for Sibneft's financial position.

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