Moody's rates Tatneft Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating to JSC Tatneft , along with a probability of default rating of Ba2.

The outlook is stable.

The ratings reflect the state-controlled nature of the company's shareholding structure as a government related issuer, the agency said.

The ratings also consider the large size of the company's reserves and Tatneft's efforts to grow production despite the challenges related to the nature of its depleting conventional reserve base in Tatarstan and high-sulphur content of its oil deposits, Moody's said.

The rating is constrained by high concentration of Tatneft's operations and reserves exclusively in Tatarstan, low quality and limited growth potential of its traditional reserve base and the company's complex organizational structure, the agency said.

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