(Repeat for additional subscribers)
Jan 10 (The following statement was released by the rating agency)
Fitch Ratings has withdrawn the expected
'BB(EXP)' rating on Bashneft Capital S.A.'s proposed USD-denominated loan
participation notes (LPNs).
KEY RATING DRIVER
Fitch had assigned the expected rating in June 2013. The rating has been
withdrawn as Bashneft has decided not to proceed with the issue at this time.
The proceeds from LPNs were intended to finance a loan to Joint Stock Oil
Company Bashneft (Bashneft, BB/Positive).
Bashneft is a second-tier Russian oil producer that accounts for 3% of oil
production and 8% of oil refining in the country, with assets located mainly in
the Republic of Bashkiria. In 9M13 its crude production averaged 318,000 barrels
per day, up 3% yoy. Bashneft is currently developing the Trebs and Titov oil
fields in the north of Russia in a joint venture with OAO LUKOIL (BBB/Stable),
which should help the company to diversify its upstream geography and balance
its upstream and downstream operations.
LIST OF RATINGS
Joint Stock Oil Company Bashneft
Long-Term foreign currency Issuer Default Rating (IDR): 'BB', Outlook Positive
Short-Term foreign currency IDR: 'B'
Long-Term local currency IDR: 'BB', Outlook Positive
Short-Term local currency IDR: 'B'
National Long-Term rating: 'AA-(rus)', Outlook Positive
Senior unsecured rating: 'BB'
National senior unsecured rating: 'AA-(rus)'
Bashneft Capital S.A.
Senior unsecured rating for LPNs: 'BB(EXP)' withdrawn