On January 20, Moody’s Investors Service has downgraded Russian gas monopoly Gazprom’s foreign-currency ratings to Baa3 from Baa2 and local-currency ratings to Baa2 from Baa1. Concurrently, Moody’s has downgraded to Prime-3 from Prime-2 the short-term foreign-currency ratings and affirmed the Prime-2 short-term local-currency ratings of Gazprom and its supported entities. All ratings are on review for downgrade.
Moody’s said the decision to downgrade Russia’s gas giant follows the weakening of Russia’s credit profile, as reflected by the rating agency’s downgrade of Russia’s government bond rating Baa3/Prime-3 (P-3) from Baa2/Prime-2 (P-2) on January 16 and its placement of the rating on review for further downgrade. Concurrently, Moody’s said it downgraded the foreign-currency bond ceiling to Baa3/P-3 from Baa2/P-2 and local-currency bond/deposit ceilings to Baa2 from Baa1. Russia’s foreign-currency deposit ceiling remains unchanged at Ba1/NP.
Moody’s said it expects that the substantial oil price and exchange rate shock will further undermine Russia’s already subdued growth prospects over the medium term; and nearer-term concerns over the negative impact of the erosion in official foreign-exchange buffers and fiscal revenues on the government’s financial strength.
Moody’s has also lowered ratings of large Russian companies Rosneft, LUKoil, Gazprom Neft, Norilsk Nickel and their subsidiary due to the fall of Russia’s sovereign rating.
http://www.neurope.eu/article/moody%E2%80%99s-downgrades-gazprom