S&P upgrades Zhaikmunai, notes

Standard & Poor's said it raised its long-term corporate credit rating on Zhaikmunai LP to B+ from B.

The outlook is stable.

The agency also raised the issue ratings on Zhaikmunai's senior secured notes to B+ from B.

S&P said the upgrade reflects its assumption that Zhaikmunai will continue to achieve robust credit metrics in 2013-2014, including funds from operations to debt of 40% or higher (2012: 48.6%) and debt to EBITDA below 2x in 2013-2014 (2012: 1.3x). This is based on the agency's base-case scenario that the company will produce about 45,000 barrels of oil equivalent per day, which is close to full production capacity, and a realized price of no less than $95 per barrel in 2013 and $90 per barrel in 2014.

S&P said it believes that adjusted EBITDA will be about $500 million in 2013 and between $400 million and $450 million in 2014. It also anticipates that oil prices will remain supportive.

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