Russian Oil Pipeline Operator Transnefteproduct Affirmed At 'BBB-/ruAAA'; Ratings Then Withdrawn At The Issuer's Request

On July 14, 2011, Standard & Poor's Ratings Services affirmed its 'BBB-' long-term corporate credit rating and 'ruAAA' Russia national scale rating on Russian refined oil product pipeline operator OJSC AK Transnefteproduct. We subsequently withdrew the ratings at the company’s request. At the time of the withdrawal, the outlook was stable. The ratings reflected our view of the increasing integration of Transnefteproduct's finances and operations into those of its 100% parent Transneft (BBB/Stable/--) and that all of the group debt currently held at the parent company level. Our assessment of Transnefteproduct's stand-alone credit profile at 'b+' reflected our view that the company faced key risks, such as competition with alternative transportation routes, high and increasing maintenance capital expenditures, and potential swings in capacity utilization. The key supports to our assessment at that time were robust profitability and healthy credit metrics.

• Full name
  open joint stock company Transnefteproduct
• Registration country
  Russia
• Industry
  Transportation