Fitch also affirmed Tatneft's issuer default and short-term ratings at 'B'.
Fitch said in a statement that the revised outlook reflected plans to launch a refinery at Nizhnekamsk, the center of Russia's petrochemical industry, which is expected to significantly boost Tatneft's business profile.
With the refinery operational, Tatneft will be able to refine 65% of its high-sulphur crude in Russia, reducing the amount blended in the Transneft pipeline network, Fitch said.
"The [refinery] project enjoys support, not only at the Republic level, but also at the federal level, and has been awarded $610 million from the Federal Investment Fund of the Russian Federation for the construction of crude oil and refined product pipelines and a rail link infrastructure intended to boost product export capacity," the statement said.
Tatneft, controlled by the government of Tatarstan in the Volga region, and the only Russian company listed in both London and New York, said earlier this month it had produced over 12.7 million tons (about 94 million bbl) of crude in January-June 2006, representing a 0.15% year-on-year increase.
The company posted a net profit according to Russian Accounting Standards of 23.4 billion rubles (about $872 mln) for the first half of 2006, up 45% on the same period of last year.
