Standard & Poor’s Raises National Scale Rating, Revises Outlook on Sibneft

Moscow, March 26, 2003. Standard & Poor’s Ratings Services has revised its outlook on Sibneft to ‘stable’ from ‘negative’ and upgraded the company’s national scale rating to ‘ruAA-’ from ‘ruA+’. Sibneft’s long-term corporate credit rating was affirmed at ‘B+’.

In a statement, Standard & Poor’s explained that the Sibneft ratings “reflect the benefits of the even split of Slavneft's assets with TNK, the sale of the minority stakes in ONACO and Orenburgneft, and Sibneft's strong operating and financial performance in 2002.”

Standard & Poor’s also cited Sibneft’s strong profitability and cash flow generation, vertical integration, and high level of exports.