S&P Raises Rosneft's Credit Rating

Rosneft ha its credit rating raised to investment grade at Standard & Poor's, which cited the state-run oil company's success in refinancing short-term debt.

S&P raised its long-term, foreign-currency score one notch to BBB-, the lowest investment grade, from BB+, analysts led by Elena Anankina said Monday. The outlook is "stable."

"The rating continues to be based on the company's stand-alone credit quality, which we now assess at BB+, plus a one-notch uplift for extraordinary state support," S&P said.

Rosneft borrowed more than $20 billion to buy Yukos assets, surpassing LUKoil as the country's top oil producer. Rosneft had $29.2 billion in debt at the start of this year, of which $15.5 billion was short term, S&P said.

The Yukos acquisitions "dramatically improved Rosneft's size, diversity and vertical integration," S&P said. "They boosted profitability because production growth helps offset ruble appreciation and because Russia's export duty regime favors refined products over crude oil."