S&P Gazprom, Transneft, Rosneft, Transnefteproduct unaffected

Standard & Poor's said its ratings and outlooks on OAO Gazprom (BB+/positive), OAO AK Transneft (BB+/stable), OJSC Oil Company Rosneft (BB/stable) and OJSC AK Transnefteproduct (B+/positive) remain unchanged following our upgrade of the Russian Federation (foreign currency sovereign credit rating BBB+/stable/A-2, local currency sovereign credit rating A-/stable/A-2).

The ratings are based on the companies' stand-alone credit quality, S&P said, noting that the ratings on Gazprom are additionally enhanced by one notch to allow for possible extraordinary state support, given the company's systemic importance to the Russian economy.

According to the agency, this bottom-up approach is used because the companies operate autonomously from the government and Russia has no track record of providing extraordinary timely support, even to strategically important corporates and has never guaranteed the debt of a state-owned company.

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