Source Pravda.Ru

Standard & Poor's revises Sibneft's rating to negative

Standard & Poor's, an international rating service, has changed Sibneft's CreditWatch rating to negative, a press release from the service that RIA Novosti received on Monday reported.

"The revision reflects Standard & Poor's concerns about potential implications for Sibneft of the fiscal and legal pressures on Sibneft's 92% shareholder, OAO NK Yukos (CCC/Watch Neg/--)," the press release said. "These have been mounting following the court decision on a $3.4 billion tax claim against Yukos (subject to an appeal) and a freeze of the company's assets (including its 92% stake in Sibneft).

"'This raises uncertainty over Sibneft's status in the event of a Yukos default or bankruptcy, further complicates the reversal of the Sibneft takeover by Yukos, and increases uncertainty over Sibneft's shareholding structure,' said Standard & Poor's credit analyst Elena Anankina. "If Yukos were allowed by the court -- which is not currently the case -- to sell its stake in Sibneft (fully or partially) to pay taxes or debt, we would be concerned that Sibneft might increase its leverage considerably to

finance a stock repurchase by the company or its former shareholders."

"The negative CreditWatch implications on Sibneft also highlight Standard & Poor's concerns over the company's aggressive corporate governance practices and financial policy. Indeed, it is unusual that Yukos, a 92% shareholder, does not have any effective control over Sibneft's management, assets, or cash flows, as illustrated by several failures to elect its representatives to Sibneft's board of directors. Although the rating on Yukos does not act as a formal constraint for Sibneft, this situation illustrates aggressive corporate governance practices, which put pressure on Sibneft's rating.

"The CreditWatch status of Sibneft will be resolved when the company's shareholding structure, financial policy, and corporate governance practices are clarified. Standard & Poor's will continue to closely monitor the situation around Sibneft and Yukos."

Three days before the second stage of the presidential election in Ukraine, Russia has banned exports of oil, coal and petroleum products to Ukraine

Russia bans exports of oil, coal and petroleum products to Ukraine

Three days before the second stage of the presidential election in Ukraine, Russia has banned exports of oil, coal and petroleum products to Ukraine

Russia bans exports of oil, coal and petroleum products to Ukraine

Three days before the second stage of the presidential election in Ukraine, Russia has banned exports of oil, coal and petroleum products to Ukraine

Russia bans exports of oil, coal and petroleum products to Ukraine
Comments
Russia bans exports of oil, coal and petroleum products to Ukraine
Russia bans exports of oil, coal and petroleum products to Ukraine
Meet Jeremy Hunt: The (Lightweight) Laboratory Politician
Putin sends telegram to Macron after Notre Dame fire: Russia ready to help
Russia and NATO terminate cooperation in military and civil areas completely
Putin addresses social issues, threatens USA with Russia's new missiles in his 15th Federal Assembly speech
Russia and NATO terminate cooperation in military and civil areas completely
Russia and NATO terminate cooperation in military and civil areas completely
Does the world need evil?
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
Christchurch aftermath: Invaders complain of invaders
Declaration of Florence: For an International Front NATO Exit
Declaration of Florence: For an International Front NATO Exit
Declaration of Florence: For an International Front NATO Exit
Declaration of Florence: For an International Front NATO Exit
Declaration of Florence: For an International Front NATO Exit
Declaration of Florence: For an International Front NATO Exit
Russia bans exports of oil, coal and petroleum products to Ukraine