Gazprom Neft Press Office:
Moody's Investors Service upgraded the Corporate Family Rating of JSC Gazprom Neft, to Baa3 from Ba1. The outlook is stable.
As part of the upgrade of the ratings into investment grade, the Ba1 rating of Gazprom Neft’s senior unsecured notes was upgraded to Baa3.
According to Moody’s the upgrade of Gazprom Neft is a reflection of its strong financial metrics, high operating and capital efficiency when compared to Russian as well as international peers. Minimal reliance on financial support from its main shareholder Gazprom, while benefiting from being part of Gazprom Group, the largest international energy market player, influenced the upgrading.
According Moody’s opinion, currently favorable oil price environment that is expected to prevail in the medium term, as well as the company’s substantial oil and gas reserves base, will contribute to the high reserves replacement ratio and relatively low 3-year all sources finding & development (F&D) costs.
The upgrade is also supported by the establishment of the long- and medium- term strategy, which provides a clear guidance into the company’s operational targets, as well as solidified relationship with its main shareholder, Gazprom.”
Moody’s views positively the fact that the company has adopted a clear financial policy, including dividend distribution, financial metrics and capital expenditure programme, which is deemed adequate in the context of the company’s projected cash flow generation.