Fitch Ratings affirmed Novatek's Long-term foreign currency Issuer Default Ratings (IDR) at 'BBB-', with a stable outlook, the rating agency informed.
Novatek's rating of 'BBB-' reflects its strong business profile as Russia's second largest natural gas producer and exporter of stable gas condensate and liquefied petroleum gas, its low price risks and manageable debt load. The ratings are limited by Novatek's moderate scale, concentrated reserve base and uncertainties over how its Yamal LNG megaproject will be financed.
Novatek's rating is also discounted by two notches due to its high exposure to Russia, which is our usual practice for Russian oil and gas companies due to corporate governance and country risks considerations.
NOVATEK (tax number: 6316031581) is the second largest natural gas producer in the Russian Federation after Gazprom. In 2012, the company increased its sales result to 58.9 bcm of natural gas (+9.7% against 2011) benefiting from its subsidiaries' organically growing gas production.
NOVATEK's IFRS profit for 2012 attributable to its shareholders increased by 22.6% to RUB 69.5 billion. Sales revenue rose by 20.4% to RUB 211 billion from RUB 175.3 billion in 2011.
IFRS net profit of NOVATEK for Q1 2013 grew by 7% to RUB 22.698 billion from RUB 21.239 billion. Sales revenue increased by 48.9% to RUB 80.6 billion from RUB 54.1 billion