S&P's, one of the world's most sought-after sources of stock recommendations, said August 25 it had withdrawn its 'B-' long-term corporate credit rating of Russian oil company Tatneft because of a lack of consistent information on the company's financial position.
"The rating withdrawal reflects a lack of information on the company's consolidated financial position and its strategy," the company said in a statement.
But Tatneft, the only Russian company listed in both London and New York, disagreed with the agency's rating action.
"Considering the volume of financial information disclosure, which has increased lately, and the company's steps and commitments to ensure the transparency of its operations, Tatneft is surprised by S&P's decision and believes the withdrawal of its credit rating to be unfounded," the company said in a statement. At the same time, Tatneft said it respected the principles used by S&P to make rating decisions.
Tatneft also said it agreed with the rating agency that the rating withdrawal did not necessarily indicate a deterioration of the company's credit quality, taking into account its improved performance.
The company posted a net profit according to Russian Accounting Standards of 23.4 billion rubles (about $872 mln) for the first half of 2006, up 45% on the same period of last year.
