Moody’s Places Bashneft’s Ratings on Review for Downgrade

Moody’s placed Bashneft’s ratings on review for downgrade reflecting the uncertainty related to the ongoing investigation of the company’s privatisation by the Investigative Committee of the Russian Federation. 

‘The placement of Bashneft’s ratings on review for downgrade reflects substantial uncertainty and limited transparency over how the company could be affected by the evolving situation regarding the investigation of the Bashneft privatisation by the Investigative Committee of the Russian Federation. The review will be focused on the assessment of any implications of the situation for each company’s business and financial profile. These rating actions are confined to Bashneft,’ reads a note published on Bashneft’s website on Friday.

On Monday, Bashneft shares fell by around 30%.

According to Moody’s, uncertainty might stem from a change of control and shareholder structure. Moody’s did not refer to risks related to Western sanctions against Russia.

According to a report published in July, Rosneft assessed the value of Bashneft and is considering buying it.