Ratings

The investors are afraid of the appropriation of Bashneft

The management of AFK Systema could have unwillingly provoked the selling out of its shares last week. The President of AFK Systema, M. Shamolin said in his conversation to the investors that the worst variant of development of the events round Bashneft could be appropriation of the oil company and the dividends it had paid (the sum was 180 billion rubles in 2009–2013), a participant of the meeting and the persons acquainted with its content say. Mr. Shamolin rejects that he spoke about appropriation and claims that he gives ‘no comments about comments about him’.
Last Wednesday the volume of trading with the stocks of System AFK at MICEX increased to 609.7 million rubles compared to 94.6 million rubles a day before. Circulation of the stocks at LSE tripled. Within the latest year, high volumes were at MICEX only on June 16th and at several bidding sessions in H2 of July when they reported about arresting of the shareholding of System AFK in Bashneft at a rate of 84%.

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Refining is favourable for Tatneft

Tatneft has made public its accounting for Q2 and H1 2014 by ISA, and has held the conference call with a discussion of the operational and financial results achieved within the period. The company’s representatives also answered the questions that were interesting for the investment community. The strong results will definitely support the issuer’s stocks.
In H1, Tatneft increased its revenue by 15.9% to 244.86 billion rubles, due to the growth in oil products yield by 21% accompanied with growth in their sales and favourable price dynamics in Russia and abroad. TANEKO produced increased light oil products that also led to the growth in revenue and profitability. Tatneft management demonstrated good control of operational expenses. Due to that, EBITDA increased by 44.2% to the record sum of 79.27 billion rubles, and net profit increased by 61.6% to 79.27 billion rubles.
Thus, the refining segment continues positive influence of the financial results of the company. TANEKO will annually process 8.5-9 million tons of oil that is much more than the announced installed capacity of 7 million tons of oil a year.

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Fitch: the EU has virtually no chance to reduce its energy dependence on Russia.

The European Union does not have so much of a chance to reduce its energy dependence on the Russian natural gas - at least in the next ten years, according to the report of the international rating agency Fitch Ratings.
"Europe is unlikely to reduce its dependence on Russian natural gas for at least the next decade, and potentially even longer. At best, the EU will be able to avoid a significant increase in purchases of gas from Russia", - the agency stated.
An improvement of Europe's energy independence from Russia can be mainly due to a reduction in the overall demand for natural gas, or due to a substantial increase in gas supplies from the alternative sources. However, according to Fitch, both variants are unlikely now.

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S & P does not believe in the efficacy of the EU and the United States energy sanctions.

The sanctions will not have a significant impact on the Russian fuel and energy sector, the Standard & Poor's (S & P) rating agency states. Russia still has large reserves of hydrocarbons, which may be extracted by conventional methods, and the majority of oil and gas projects that require the use of the new methods of production are in the embryonic stage, RBC daily informs.
The EU and the United States imposed sanctions against Russian fuel and energy sector on August 1st and 6th, restricting the export of certain goods and technologies that are intended for use in the long-term Arctic shelf, deepwater and shale oil projects in Russia. The United States approached with tougher measures banning the export of equipment (including some of the technology for the seismic exploration and hydraulic fracturing in its list) to Russia. Washington banned American companies and banks from lending to "Rosneft" and Novatek for more than 90 days. Europe did not introduce any restrictions against specific oil and gas companies. The duration of the United States sanctions has not been agreed, while the European were introduced for one year.

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Alfa Bank analysts have raised their recommendations about Tatneft stocks

Tatneft's GDR's, as well as the stocks of other Russian companies, have demonstrated rather weak dynamics since the latest renewal of their recommendations and accounting price in the end of June 2014. Now Tatneft securities have the growth potential of 26% to the 12-month accounting price calculated on the basis of several estimating methods. Recommendations are raised from ‘at market’ to ‘up market’. The possible increase in bitumen oil production can be an important source of the company’s profit with the stagnating traditional production. However, the doubling of processing capacity at TANEKO oil refinery raises serious anxiety at the background of the future tax manoeuvre in the Russian oil sector. The analysts await that after the reform of the oil refining margin will reduce

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Fitch: "Gazprom" to maintain leadership in the European market, despite the political pressure.

The international rating agency Fitch Ratings has approved a long-term credit rating of "Gazprom" at BBB, which confirms the solvency of the issuer.
""Gazprom" ratings reflect our forecasts - "Gazprom" will be a major supplier of gas to Europe, despite the competitive and political pressure", - the agency's website states.

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Fitch confirms rating of Gazprom at the level of BBB with “negative” forecast

The international rating agency Fitch Ratings has confirmed the long-term issuer default rating (IDR) of Gazprom on its liabilities in foreign and local currency at the level of BBB with "negative" forecast, the press release of the agency reports.

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Firch Ratings raises rating of Norilsk Nickel to BBB-

The International rating agency Fitch Ratings has raised a long-term issuer default rating of the leading producer of copper,nickel, platinum and palladium - the Russian company Norilsk Nickel to a level BBB-, the forecast is stable.
As the agency noted, the increase of the rating reflects the positive changes in the corporate management of the company. Events include the signing of a new shareholders' agreement, as well as updated structure of shareholders, which is an earnest improvement of the transparency and profitability of the Norilsk Nickel’s business, as well as increase of its market value.

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"Bashneft" took 9th place above other Russian companies in the world ranking for the growth of the shareholder value.

"Bashneft" became the first Russian company and the ninth in the world list on the TSR rating of the growth in shareholder value. "Bashneft" took 9th place among the oil companies, "the Vedomosti" newspaper writes referring to the report of The Boston Consulting Group.
BCG evaluates the public companies on several parameters to display the result - the rate of increase the value of their securities in terms of both their current shareholders income and the prospects, the newspaper writes. Until now, there never were more than two Russian players simultaneously in the ranking published since 2009.

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Moody’s confirms Gazprom and Rosneft’s negative outlook

The international rating agency Moody’s has confirmed the Baa1 ratings of Gazprom and Rosneft. It is said about in a statement of the agency.
The agency has also confirmed the ratings of Gazpromneft and Rosneft International Holding Ltd at Baa2. The outlook is negative.

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