Moody's downgrades TNK-BP outlook to "developing"

MOSCOW Aug 5 (Reuters) - Moody's Investors Service on Tuesday downgraded its outlook for troubled Russian oil firm TNK-BP, after its chief financial officer walked out amidst a shareholder battle.

"Moody's ... changed the outlook on TNK-BP International Baa2 ratings to developing from stable," the ratings agency said in a statement.

Problems at TNK-BP, owned 50:50 by BP (BP.L) and a quartet of Soviet-born billionaires, worsened on Monday when the firm's chief financial officer, James Owen, resigned, citing a conflict between the British major and its partners.

"(The change) reflects the general uncertainties surrounding the current shareholder dispute ... The recent announcement of the CFO's departure also adds further uncertainty," Moody's said. The agency also noted that the current management is not sustainable "with the CEO operating remotely".

TNK-BP's chief executive, Robert Dudley, was unable to renew his visa and left Russia late last month saying there was a campaign of harassment against himself and the company. He is running the company from an undisclosed location.

TNK-BP is responsible for a quarter of BP's global output and many analysts say BP cannot afford to lose its investment in the firm, which generated $5.7 billion in profits last year.

BP's partners, billionaires Viktor Vekselberg, Mikhail Fridman, German Khan and Len Blavatnik, have said a peace deal is possible only if BP agrees to change TNK-BP's management fully, appoint an independent CEO and establish equal representation on TNK-BP units' boards.

Fridman and BP's chief executive, Tony Hayward, met in Prague last week. (Reporting by Amie Ferris-Rotman; Editing by Greg Mahlich)