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Rosneft rating outlook raised by Moody's on improved finances

OAO Rosneft, Russia's second-biggest oil producer, had its long-term credit outlook raised by Moody's Investors Service, which cited improving corporate finances.

The ratings service raised its outlook for state-run Rosneft's foreign- and local-currency debt to „positive” from „stable,” Moody's said in an e-mail today. Moody's rates Rosneft at Baa2, the second-lowest investment grade. The change follows „significant improvements” in the company's finances „and the prospect of further strengthening of its business profile, both as regards upstream field development and downstream integration,” Moody's said in the statement. Moody's rival Standard & Poor's Ratings Service raised its rating on Rosneft one level last week to BB+, the highest non-investment, or junk, grade. Fitch Ratings on December 28 lifted its outlook for Rosneft to „positive,” citing „strong” Q3 financial results. Fitch rates the Moscow-based company BB+, also one step below investment grade. (Bloomberg)