Lower Oil Prices Prompt Revision Of Gazprom,KazMunayGas, And Tengizchevroil Outlooks To Negative

  • We updated our Brent oil price assumptions on March 19, 2020, and we now expect $30 perbarrel (/bbl) for the remainder of 2020, $50/bbl in 2021, and $55/bbl thereafter.
  • We project most rated oil and gas companies' core debt coverage metrics will be below ourrating guidelines, with weaker cash flows in 2020.
  • However, the tax systems in Russia and Kazakhstan, along with devaluation of the localcurrencies, should partly offset the impact of the low prices on oil companies in thesecountries, versus the effects on their global peers.
  • We are therefore taking rating actions on Gazprom in Russia and on KazMunayGas AndTengizchevroil in Kazakhstan.

MOSCOW (S&P Global Ratings) March 27, 2020--S&P Global Ratings today took rating actions onthree Russia- and Kazakhstan-based oil and gas companies as part of our global review of thesector following the oil price collapse.

In Russia, we revised the outlook on our 'BBB' local currency rating on Gazprom PJSC to negativefrom stable. We affirmed the 'BBB-' foreign currency rating. The ratings on all the other Russianhydrocarbon companies we rate are unchanged, because we think the drop in credit metrics willbe immaterial and temporary, thanks to the way the Russian tax system works and reflecting thepositive impact of a weak ruble. Still, improvement in market conditions in 2021 will be importantfor the ratings, especially for Gazprom, because we assume meaningful improvement of gasprices.

Full text of the press release is available here .


IMPORTANT: Please read carefully the following disclaimer in full. Please note that the disclaimer below may be amended or supplemented.


Forward-looking statements

This website may include statements that are, or may be deemed to be, ‘‘forward-looking statements’’. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ‘‘believes’’, ‘‘estimates’’, ‘‘anticipates’’, ‘‘expects’’, ‘‘intends’’, ‘‘may’’, ‘‘target’’, ‘‘will’’, or ‘‘should’’ or, in each case, their negative form or similar or comparable terminology, or links to discussions of strategy, plans, objectives, goals, future events or intentions are meant to indicate forward-looking statements. These forward-looking statements include all statements that are not historical facts. Such forward-looking statements, without limitation, are the statements of intention, opinion, forecast and Company statements regarding its expectations in relation to, amongst other things, the Company performance, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements do not guarantee the future performance and the actual performance, including the financial condition and liquidity of the Company and the development of the country and the industries in which the Company operates may differ significantly from what is described on this website or is assumed according to the forward-looking statements contained on this website. The information contained on the website is not exhaustive. Despite the thorough preparation of information, not all information can be accurate and relevant in all respects, and the Company shall not be liable for updating any information regarding the industry or any forward-looking statements contained on this website, whether as a result of new information, future events or any other circumstances. Any information represented or contained on this website may be corrected or amended without prior notice. The Company does not make any assurances, does not provide any guarantees and does not make any forecasts that the results indicated in such forward-looking statements will be achieved.

The Company shall not be liable for the correct understanding of the information published on this website by the third parties. For whatever purpose, one should not rely on the accuracy, completeness or validity of the information or opinions contained on this website, and no responsibility or liability is assumed by the Company, its shareholders or associated companies, their officials, employees, directors, affiliates, agents or consultants for any information or opinions or for any errors or omissions contained on this website. The company shall not be liable for investment and other financial decisions of the third parties based on the forward-looking statements published on this website.

Neither the Company nor its consultants shall bear any liability for direct or indirect or subsequent losses of any kind arising from the use of this website or the information it contains.

I have read the Disclaimer