Company news in September 2004 | |||
Ratings and Outlook on TNK-BP Unchanged on Planned Restructuring
Standard & Poor's Ratings Services said today that its rating and outlook on TNK-BP (BB-/Positive/--), Russia's third-largest oil company in terms of reserves, production, and exports, remain unchanged following TNK-BP's announcement that it is to restructure its corporate organization. TNK-BP is a British Virgin Islands-based legal entity created in 2003 that holds 100% of TNK International Ltd. (TNK; BB-/Positive/--).
The restructuring would gradually bring the TNK-BP group's cash-generating assets under a new Russian holding entity (NRH), and ultimately under TNK-BP. The restructuring is viewed as broadly credit-neutral, as the company's cash-generating base will remain the same. Initially, the NRH will be 100%-owned by TNK and, following the consolidation of minority shareholders in its operating subsidiaries, is not expected to be significantly diluted. The NRH is expected to become the group's profit center and borrower.
TNK-BP is in the process of obtaining creditors' general consent to the restructuring. Although restructuring is a long process requiring significant management resources, as well as regulatory, creditors', and shareholders' approvals, it will help improve transparency and corporate governance throughout the group.
Analyst E-Mail Addresses
elena_anankina@standardandpoors.com
eric_tanguy@standardandpoors.com
CorporateFinanceEurope@standardandpoors.com
Contacts:
Elena Anankina, Moscow (7) 095-783-4130,
Eric Tanguy, Paris (33) 1-4420-6666
Media inquiries:
Claude Chaubet-Bride, Paris (33) 1-4420-6657
Source: Standard & Poor's