Moody’s retains the credit rating of Rosneft

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The international rating agency Moody’s has retained the credit rating of Rosneft at the investment grade Baa3. This became known on April 28 from the analytical report of the agency, which is at the disposal of Izvestia.

Now Rosneft has credit ratings from all international rating agencies: Moody’s (Baa3, stable), S&P (BBB-, stable) and Fitch (BBB, stable – through PJSC ANK Bashneft).

Analysts from the rating agency noted the low level of production costs of Rosneft and predicted that in 2021 the company will demonstrate improvement in credit metrics.

Moody’s also noted that even with lower oil prices, Rosneft’s liquidity sources are sufficient to further reduce debt, finance capital investments and dividend payments.

“Despite the reduction in the capital expenditure program in 2020, which is a general market trend, Rosneft did not postpone the launch of strategically important projects, providing itself a significant competitive advantage in the future, since now Rosneft has no significant risks for long-term production volumes and the level of profit, “- says the report Moody’s.

Among the achievements of Rosneft, the agency also noted a consistent increase in the share of gas in hydrocarbon production and the intention to direct 7% of capital investments in 2020-2022 to “green investments”. The company has also developed a plan that implies a reduction in the specific intensity of CO2 emissions.