Company news in September 2004 | |||
Fitch Affirms TNK International on Restructuring
Fitch Ratings, the international rating agency, has today affirmed TNK International Ltd's ("TNK") Senior Unsecured and Senior Secured foreign currency ratings at 'BB' and 'BB+' respectively. It has also affirmed the Long-term rating on TNK’s $700 million 2007 Eurobond at ‘BB’.
The affirmation follows the corporate restructuring announcement of TNK-BP, the holding company of TNK, and is based on the current information available on the reorganisation. Fitch will seek further clarification of the tax implications of the company’s restructuring and reassess the rating as and when more details become available.
Under the TNK restructuring plan, a Russia-registered holding company will be formed to consolidate the three existing holding companies - OAO TNK, OAO Onako and OAO Sidanco - into one. Additionally, all debt will be transferred to this New Russian Holding (“NRH”) Company, while TNK International Ltd. will remain the guarantor and retain full ownership of the operating subsidiaries and full control of their respective cash flows. NRH will be registered in Russia's Tyumen region in Western Siberia.
At its mid-year meeting, TNK-BP’s Board of Directors supported the general direction of the proposed restructuring subject to receiving lenders’ and regulatory approvals. Management is in consultations with minority shareholders in its various subsidiaries, as well as local and regional authorities. The restructuring should start later this year, pending the above mentioned approvals, and is expected to simplify the group structure, provide greater transparency and improve corporate governance within the group.
Fitch will continue to monitor the situation and will seek an update from management at the review meeting scheduled later this year
TNK, Russia's third largest oil company by crude production, is equally owned by BP plc ('AA+'/'F1+') and Alfa Group and Access/Renova.
Contact: Jeffrey Woodruff, Moscow, Tel: +7 095 956 9986; Josef Pospisil, London, Tel: +44 20 7417 4266.
Source: Fitch Ratings-Moscow/London