Summary: OJSC Oil Co. Rosneft Sep 11
- ID: 1927363
- September 2011
- Standard & Poors
The rating on Russian OJSC Oil Co. Rosneft reflects its stand-alone credit profile (SACP), which Standard & Poor's Ratings Services assesses at 'bbb-'. Rosneft's "satisfactory" business risk profile is supported by the company's vast proven reserves, large-scale and low-cost production, and its privileged access to attractive assets in Russia. Russian oil taxes are high, but they are linked to the oil price, which makes Rosneft's profits more stable. Being a vertically integrated company, Rosneft currently benefits from Russia's tax system favoring refined product exports over crude exports. The key constraint on Rosneft's business profile is the company's high and growing capital-expenditure needs to support oil production and modernize refineries that we expect to be free operating cash flow (FOCF) neutral...
Companies mentioned in this report are: OJSC Oil Co. Rosneft
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >