Company news in September 2004 | |||
MOODY'S AFFIRMS TNK's Ba2/Ba3 RATINGS, OUTLOOK REMAINS POSITIVE
Moody's Investors Service has today affirmed the Ba2 senior implied rating of TNK International and Ba3 rating of TNK's $700 million Loan Participation Notes due 2007 following the announcement that the TNK-BP group is to be restructured. Moody's believes that the restructure will be of modest rating benefit and maintains its positive outlook on the LPNs.
TNK-BP has today announced its intention to restructure itself by establishing a new Russian holding company ("NRH") which will consolidate the Russian interests of the various group companies including those of TNK's parent and guarantor, TNK International (TIL). These will be merged into NRH and the minority interests consolidated. As the successor company of TNK, NRH will become the borrower under the LPN structure. Moody's does not believe that the restructure will have any negative impact on the interests of bondholders and notes that TNK expects that consolidated cash flow and debt at the TIL level will be unchanged. Indeed the rating agency believes that the proposed restructure will have a modestly positive result as it will afford greater streamlining and transparency.
TNK (JSC Tyumen Oil Company), headquartered in Moscow, is the main operating subsidiary and debt issuer of the TNK-BP group. TNK International Ltd, registered in the British Virgin Islands, is a principal holding company in the newly-formed TNK-BP group, and guarantor of TNK's debt. TNK-BP is the third-largest oil company in Russia.
London
Stuart Lawton
Managing Director
European Corporates
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Jeremy Hawes
Senior Vice President
European Corporates
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Source: Moody's Investors Service Ltd.