The international rating agency Standard & Poor’s (S&P) raised the long- and short-term corporate credit ratings of TNK-BP International Ltd. (TNK-BP) to ВВВ-/А-3 from ВВ+/В with a stable outlook.

“The upgrade reflects our perception of material improvements in
governance and shareholder alignment,” said Standard & Poor’s
primary credit analyst Karl Nietvelt.

The upgraded ratings reflect the high efficiency of the new agreement
among the shareholders signed in January 2009 and the better alignment
of shareholder interests. The ratings were raised after recent meetings
between the TNK-BP management and shareholder representatives from
Alpha/Access/Renova (AAR) and BP Plc.

“These meetings gave us a better understanding of the reasons behind
the conflict of the shareholders last year and the factors behind the
improvement of their relationship,” said the rating agency.

According to S&P, AAR and BP have reached better agreement on many
issues, in particular, international strategic development, which may
be selective and depend on how much the profit from it may exceed the
profit from development on the attractive Russian market (for example,
implementation of new multi-billion-dollar projects in Yamal), more
independent management of the company, more efficient role of its
independent directors in balancing the interests of the two
shareholders, readiness of the shareholders to ensure long-term
development of TNK-BP, and their joint and coordinated stance on
organization of possible initial public offering (IPO) of up to 20%.

“Other positive changes in corporate governance practice include the
efficient performance of the Board of Directors, which held several
meetings and made some important decisions this year, the active role
of three independent directors, the recent appointment of Maksim Barsky
as General Director of the company (who will enter the office on
January 1, 2011 – Interfax-ANI), which we see as yet another sign of
accord between the shareholders, and the fact that there were no new
discrepancies on important issues between the shareholders after
signing the agreement,” says the press release of the rating agency.

“The stable outlook reflects our expectations that TNK-BP will maintain
its high financial indicators and stable performance indicators as it
did this year,” stressed Mr. Nieltvelt.

TNK-BP noted that the corporate credit rating upgrade by Standard &
Poor’s is a positive sign for the company. “Our investment-grade
ratings have been raised by all three rating agencies. I think it is
acknowledgement of TNK-BP’s strong standings in all spheres of its
activity. We have been increasing our production for eight consecutive
quarters and replenishing our resource base faster than average in the
industry. Apart from that, our new corporate governance structure is
functioning very well, which is corroborated by this upgrade of S&P
and the recent moves of Fitch and Moody’s,” said Jonathan Muir, Chief
Financial Officer of the company in TNK-BP’s statement.

Source: Interfax-ANI

Search to find what you want

• Moody rating updates for the shipping

    Moody’s Investors Service has updated its rating methodology for shipping companies and its approach to assessing the credit risk for companies within the sector, a statement said. The rating methodology is an update of the shipping rating methodology published in December 2005.“Without changing the basic structure of the previous

• BP rating from Fitch

    Fitch Ratings, one of the three big credit rating agencies, has downgraded BP following the disastrous Gulf of Mexico oil spill. The oil giant’s rating has been cut by six notches, from AA to BBB. The move means Fitch is less confident of BP’s ability to repay its debts following

• Fitch cuts rating on BP oil spill risks

    International ratings agency Fitch on Thursday lowered BP’s rating from “AA+” to “AA” and placed it on negative watch, citing risks arising from the Gulf of Mexico oil disaster. “Fitch Ratings has today downgraded BP plc’s Long-term Issuer Default Rating and senior unsecured rating to ‘AA’ from ‘AA+’, respectively, and

• AM Best affirms ratings of the West of England Shipowners Mutual Insurance Association

    A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of The West of England Ship Owners Mutual Insurance Association (Luxembourg) (WOE or the Club)

• Moody provides a stable year in the credit ratings of steel companies

    Reuters reported that rating agency Moody’s Investors Service expects a stable year in the credit ratings of steel companies as demand bounces back, but rising prices of steel making raw materials pose a key risk. Mr Matthias Hellstern senior credit officer at Moody’s said that “If raw material prices are

• Fitch: Challenges for the majority of Asian shipping companies in 2010

    Fitch Ratings has today said, in a just published report, that the majority of the shipping companies it rates in Asia will continue to face significant operating and credit challenges in 2010.

• FSL Trust rated P

    Standard & Poor’s Ratings Services said on Monday that it had assigned its ‘BB-’ long-term corporate credit rating to Singapore-based ship financing business, First Ship Lease Trust (FSL).

• Fitch: Global Recovery to support prices, investment in Latin America oil and gas sector

    The Latin American oil and gas industry will experience increased free cash flow generation and improved credit metrics in 2010, driven by a stronger hydrocarbon price environment as the global economy begins to recover, according to Fitch Ratings.A significant drop during 2009 in hydrocarbon prices resulted in a deterioration

• ThyssenKrupp Cut to Junk by S P on steel, investment

    ThyssenKrupp AG, Germany’s largest steelmaker, had its credit ratings cut to junk from the lowest investment grade by Standard & Poor’s because of the company’s “high” spending and a “sharp downturn” in the industry.The Dusseldorf-based steelmaker’s long-term debt rating was lowered to BB+ from BBB- and short-term assessment to

• Standard \ u0026amp; Poor \ u0026 # 39; s confirmed rating of BB + with stable outlook NCSP

    Novorossiysk Commercial Sea Port announces today that it’s BB+ credit rating has been affirmed by Standard & Poor’s rating agency with stable outlook. Commenting on the rating action, NCSP Chairman Alexander Ponomarenko said: «The affirmation of this high-level credit rating by one of the world’s leading rating agencies reflects the strengths inherent