26.03.2020
The international rating agency S&P revised its outlook on KMG to "negative" on the back of lower oil prices

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 .