Moody's says Russian Bashneft’s acquisition of Burneftegaz credit neutral

April 9, 2014

Moody's Investors Service said on April 8 that the acquisition of 100% of LLC Burneftegaz, an exploration and production company operating in the Tyumen District, by Bashneft (Ba2 stable) is credit neutral for Bashneft’s ratings, Bashneft’s press office has said.

Although the transaction, which was debt-funded, will have a temporary adverse effect on the company's financial metrics, these will remain consistent with Moody's guidance for the current rating category. Moody’s notes that the transaction will benefit Bashneft’s upstream profile and geographic diversification in the long term.

Source: Bashneft Press Office, 2014