MOSCOW, December 28 (RIA Novosti) - Fitch Ratings has placed Rosneft's foreign and local currency Issuer Default ratings of BB+ on Rating Watch Positive, the international rating agency said Thursday.
Fitch said the move reflects the company's announcement of strong financial results for the first nine months of 2006.
"Rosneft continues to make improvements in its upstream portfolio. The company expects its oil production growth rate in 2006 to be 8% compared to the Russian average of closer to 2.5%," Fitch said.
According to Fitch, Rosneft plans to increase oil production by 9% in 2007 and natural gas production by 11%. Rosneft also continues to enjoy low lifting costs, high reserve replacement rates and a favorable netback profile. The company has also made improvements in corporate governance in 2006 with the appointment of three independent directors and the establishment of quarterly financial reporting, Fitch said.
