S&P upbeat on TNK-BP

Oct. 25, 2012 at 7:40 AM
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MOSCOW, Oct. 25 (UPI) -- International credit-rating agency Standard and Poor's gave a positive outlook to Russian oil company TNK-BP following a shareholder shakeup, the agency said.

The agency, in a statement to Russia's state-run news agency RIA Novosti, said it gave a BBB- long-term rating to TNK-BP and an A-3 short-term for the joint venture.

"The rating actions follow an announcement by Russian state-controlled oil company Rosneft OJSC that it had agreed in principle to purchase a 50 percent stake in TNK-BP from BP PLC for $17.1 billion in cash and 12.84 percent of treasury shares," the statement read. "Rosneft also intends to buy another 50 percent of TNK-BP from the Russian consortium AAR for $28 billion."

AAR -- Afla-Acess-Renova -- represented the Russian half of TNK-BP. Both sides of the venture were at odds over corporate direction.

Moody's Investors Service said Wednesday it put the venture on a downgrade review following the announcements.

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