Fitch upgrades Lukoil to BBB+

Fitch Ratings said it upgraded PJSC Lukoil's long-term foreign- and local-currency issuer default ratings to BBB+ from BBB-.

The outlook was revised to stable from positive.

Fitch said the upgrade to BBB+, two notches above Russia's (BBB-/positive) country ceiling of BBB-, was driven by its reassessment of the oil and gas sectoral regulatory framework in Russia and the assessment of Lukoil's very strong hard-currency external debt service capacity.

The agency believes that Russian state's track record toward the oil and gas sector has been supportive, even in the period of low oil prices, and Fitch said it does not cap ratings of Russian oil and gas companies by the rating of the sovereign, which was the case in the past.

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