/Fitch Ratings, December 12, 06/ - Fitch Ratings says in a special report issued
today that its 2007 oil and gas outlook for Russia and the CIS is cautiously
optimistic. "Russian and CIS oil and gas companies have benefited from the
robust hydrocarbon price environment, but the increased debt funding being seen
for capital projects, whose economics are based on a high fuel price environment,
could leave entities vulnerable to the effects of an economic slowdown,"
comments Jeffery Woodruff, Director in Fitch's Energy and Utilities team based in
Moscow.
In the report, Fitch comments on the production slowdown being experienced in
the region at a time of increasing world demand for energy. The report reviews the
extensive capital projects being planned by entities throughout the region, their
expectations for future oil prices, likely acquisitions and the key credit factors
influencing the region over the next 12 months.
The report also comments on the increasing state influence in the sector, but
cautions against seeing an automatic linkage between the continued
improvements to the sovereign's credit profile and that of the corporate sector.
The full report, "CIS 2007 Oil and Gas Credit Outlook - Cautious Optimism", is
freely available on Fitch's website www.fitchratings.com.
Contact: Jeffrey Woodruff, Moscow, Tel: +7-095-956-9986;
Andrew Steel, London, +44 (0) 20 7862 4086.
Media Relations: Julian Dennison, London, Tel: +44 20 7862 4080;
Alla Izmailova, Moscow, Tel: +7 495 956 9903.
Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site,
http://www.fitchratings.com. Published ratings, criteria
and methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.
[2006-12-13]