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RPT-Fitch Withdraws Bashneft LPNs' 'BB(EXP)' Rating
January 10, 2014 / 10:37 AM / 4 years ago

RPT-Fitch Withdraws Bashneft LPNs' 'BB(EXP)' Rating

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Jan 10 (Reuters) - (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Fitch Ratings has withdrawn the expected ‘BB(EXP)’ rating on Bashneft Capital S.A.’s proposed USD-denominated loan participation notes (LPNs).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 The rating has been withdrawn as Bashneft has decided not to proceed with the issue at this time.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Senior unsecured rating for LPNs: ‘BB(EXP)’ withdrawn

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