Potential extraordinary support from OAO AK Transneft. Flexible tariff-setting framework. Favorable market position. High maintenance capital-expenditure requirements. Massive planned investments in the new "South" pipeline, which will lead to high leverage in the medium term. Competition with railways. The rating on Russian oil product pipeline operator OJSC AK Transnefteproduct (TNP) reflects Standard & Poor's Ratings Services' view of a relatively high likelihood of support from its 100% owner OAO AK Transneft (BBB/Stable/--), as well as TNP's stand-alone credit profile (SACP) of 'B+'. Our assessment of the likelihood of support from Transneft is based on the close and increasing integration between the two companies, as well as Transneft's ability to support TNP, witnessed by our investment-grade rating on Transneft. Our current...
Companies mentioned in this report are: OJSC AK Transnefteproduct,OAO AK Transneft,Russian Railways (JSC),TransCapitalInvest Ltd.
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Research Type: Full Analysis