MOSCOW, July 2 (RIA Novosti) - Fitch Ratings upgraded Monday Russia's state-controlled oil company Rosneft's [RTS: ROSN] long-term foreign and local currency ratings from BB+ to BBB-, with a positive outlook.
"The upgraded IDR [Issuer Default Ratings] reflects Rosneft's strengthened competitive position, following a series of acquisitions predominantly in the refining and distribution segments, making it one of Russia's leading integrated oil and gas companies," the agency said in a statement.
Rosneft has bought most of the key production and processing units of bankrupt oil firm Yukos in 16 state auctions, including Yuganskneftegaz, Siberia-based Tomskneft and Volga-based Samaraneftegaz.
"The acquisition of refining and distribution assets has greatly enhanced the company's business profile and vertical integration," said Valentina Goryunova, a Moscow-based Director in Fitch's Energy & Utilities ratings group.
Fitch also said "the positive outlook foresees a measurable reduction in the company's total debt level over the medium-term as the company refinances its debt, restructures its tax liabilities and favorably resolves any outstanding third-party claims."
Rosneft said in June its oil output expanded 8.7%, year-on-year, in the first quarter of 2007 to 147.92 million barrels, and the company expected to produce over 100 million metric tons (733 million barrels) of oil in 2007, taking into account former Yukos assets.
Rosneft's revenues in 1Q07 increased 12.2%, to $8.22 billion, the company said.
