S&P Places Russian Insurer on CreditWatch/Negative

Standard & Poor’s Ratings Services announced that it has placed its “B-” long-term counterparty credit and insurer financial strength ratings and its “ruBBB-” Russia national scale rating on the Russian insurer Neftepolis Insurance Co. LLC (Neftepolis) on CreditWatch with negative implications.

“The CreditWatch placement follows the May 18 downgrade of Neftepolis’ ultimate parent–Russia-based, state-owned oil company OJSC Oil Company Rosneft (Rosneft)–to ‘B-‘ from ‘B’ following cancellation of its merger with Russian gas company OAO Gazprom (BB-/Stable/–),” said the announcement.

S&P also indicated that the ratings on Rosneft remain on CreditWatch with negative implications. “The CreditWatch placement of Neftepolis reflects the CreditWatch status of its parent,” stated S&P credit analyst Tatiana Grineva. “It is likely that any downgrade of Rosneft would result in a similar rating action on Neftepolis. Similarly, resolution of the CreditWatch placement of Neftepolis will coincide with the resolution of Rosneft’s CreditWatch status.”