Follows the placement on review for downgrade of Russia's sovereign rating
NOTE: On April 12, 2022, the press release was corrected as follows: The Principal Methodologies section was changed to reflect that the principal methodology used in rating Gazprom Neft PJSC was Integrated Oil and Gas Methodology published in September 2019. Revised release follows.
London, 02 March 2022 -- Moody's Investors Service ("Moody's") has today
placed on review for downgrade all ratings of 51 Russian non-financial
corporates, as well as Baseline Credit Assessments in the case of
Government-Related Issuers. Today's rating actions
follow the sovereign rating action on the Government of Russia which took
place on 25 February 2022, where Moody's placed the Government of
Russia's Baa3 long-term issuer (domestic and foreign currency)
and senior unsecured (domestic and foreign currency) ratings as well as
the P-3 Other Short Term (domestic currency) rating on review for
downgrade; Russia's local- and foreign-currency country
ceilings remained unchanged at Baa1 and Baa2, respectively.
The placement of Russia's sovereign ratings on review for downgrade
was triggered by Russia's further military operation in Ukraine
which started on 24 February 2022, and reflects the negative credit
implications for Russia's credit profile from the additional and
more severe sanctions being imposed. The review period will allow
Moody's to evaluate the scale of the military conflict and the impact
of further sanctions including their scope, the sectors targeted
and the degree of coordination between Western countries and ultimate
severity of their impact on Russia's credit profile. For
additional information, please refer to the related announcement
https://www.moodys.com/research/--PR_461633.
Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463395
for the List of Affected Credit Ratings. This list is an integral
part of this Press Release and identifies each affected issuer.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE
OF THE RATINGS
Today's rating actions on the affected corporates are a direct consequence
of the sovereign rating action and reflect Moody's view that a potential
downgrade of Russia's sovereign ratings and lowering of its country ceilings
could or would lead to downgrades of the affected corporates' ratings,
because of their strong interlinkages with the sovereign rating.
The review for downgrade, in particular, will take into account
(1) Russia's sovereign ratings and country ceilings following the conclusion
of the sovereign review; (2) the affected corporates' individual
credit factors, including the effect of sanctions on their credit
quality; and (3) the likelihood of potential state support to the
corporates in the event of financial distress.
PRINCIPAL METHODOLOGIES
The principal methodology used in rating PJSC PhosAgro, PhosAgro
Bond Funding DAC, Sibur Holding, PJSC and Sibur Securities
DAC was Chemical Industry published in March 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1152388.
The principal methodology used in rating PAO Novatek and Novatek Finance
Limited was Independent Exploration and Production published in August
2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1284973.
The principal methodologies used in rating Gazprom, PJSC,
Bashneft PJSOC, GPN Capital S.A.,
PJSC Oil Company Rosneft, Rosneft International Finance Limited,
Tatneft PJSC, Gaz Finance Plc and Gaz Capital S.A.
were Integrated Oil and Gas Methodology published in September 2019 and
available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1172345,
and Government-Related Issuers Methodology published in February
2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207.
The principal methodology used in rating Metalloinvest Finance D.A.C.,
PJSC Polyus, Polyus Finance Plc, MMC Norilsk Nickel,
PJSC and MMC Finance DAC was Mining published in October 2021 and available
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1292752.
The principal methodologies used in rating ALROSA PJSC and Alrosa Finance
S.A. were Mining published in October 2021 and available
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1292752,
and Government-Related Issuers Methodology published in February
2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207.
The principal methodology used in rating Federal Passenger Company JSC
was Passenger Railways and Bus Companies published in December 2021 and
available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1299262.
The principal methodology used in rating Idgc Of Urals, Jsc,
Rosseti Center and Volga region, PJSC, Rosseti Lenenergo,
PJSC, Rosseti Moscow Region, PJSC and Rosseti Volga,
PJSC was Regulated Electric and Gas Networks published in March 2017 and
available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225.
The principal methodologies used in rating Rosseti, Pjsc,
Federal Grid Finance D.A.C., FGC UES,
PJSC and Transneft, PJSC were Regulated Electric and Gas Networks
published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225,
and Government-Related Issuers Methodology published in February
2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207.
The principal methodologies used in rating Sovcomflot PAO and SCF Capital
Designated Activity Company were Shipping published in June 2021 and available
at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1276306,
and Government-Related Issuers Methodology published in February
2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207.
The principal methodology used in rating NLMK, Steel Funding D.A.C.,
Magnitogorsk Iron & Steel Works, MMK International Capital DAC,
Pao Severstal and Steel Capital S.A.was Steel published
in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296098.
The principal methodologies used in rating Russian Railways Joint Stock
Company and RZD Capital PLC were Surface Transportation and Logistics
published in December 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296092,
and Government-Related Issuers Methodology published in February
2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207.
The principal methodology used in rating Mobile Telesystems Public Joint
Stock Company and MTS International Funding Limited was Telecommunications
Service Providers published in January 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1055812.
The principal methodologies used in rating Atomenergoprom, JSC,
Inter RAO, PJSC, RusHydro Capital Markets DAC and RusHydro,
PJSC were Unregulated Utilities and Unregulated Power Companies published
in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1066389,
and Government-Related Issuers Methodology published in February
2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207.
The principal methodology used in rating Gazprom Neft PJSC, Lukoil, PJSC, LUKOIL
Capital DAC and LUKOIL International Finance B.V. was Integrated
Oil and Gas Methodology published in September 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1172345.
Alternatively, please see the Rating Methodologies page on www.moodys.com
for a copy of these methodologies.
REGULATORY DISCLOSURES
The List of Affected Credit Ratings announced here are a mix of solicited
and unsolicited credit ratings. For additional information,
please refer to Moody's Policy for Designating and Assigning Unsolicited
Credit Ratings available on its website www.moodys.com.
Additionally, the List of Affected Credit Ratings includes additional
disclosures that vary with regard to some of the ratings. Please
click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463395
for the List of Affected Credit Ratings. This list is an integral
part of this Press Release and provides, for each of the credit
ratings covered, Moody's disclosures on the following items:
• EU Endorsement Status
• UK Endorsement Status
• Rating Solicitation
• Issuer Participation
• Participation: Access to Management
• Participation: Access to Internal Documents
• Releasing Office
• Person Approving the Credit Rating
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions in the disclosure form. Moody's
Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security or pursuant
to a program for which the ratings are derived exclusively from existing
ratings in accordance with Moody's rating practices. For ratings
issued on a support provider, this announcement provides certain
regulatory disclosures in relation to the credit rating action on the
support provider and in relation to each particular credit rating action
for securities that derive their credit ratings from the support provider's
credit rating. For provisional ratings, this announcement
provides certain regulatory disclosures in relation to the provisional
rating assigned, and in relation to a definitive rating that may
be assigned subsequent to the final issuance of the debt, in each
case where the transaction structure and terms have not changed prior
to the assignment of the definitive rating in a manner that would have
affected the rating. For further information please see the ratings
tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The ratings have been disclosed to the rated entity or its designated
agent(s) and issued with no amendment resulting from that disclosure.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Moody's general principles for assessing environmental, social
and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Releasing Office:
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One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454