Weekend Economists Split for Havana February 6-8, 2015

[MattSh]

33. Gazprom gets highest investment grade from China’s biggest ratings agency

China’s Dagong rating agency has given Russia’s Gazprom the highest AAA credit rating with a long-term stable outlook. It says US and EU sanctions won’t have a substantial effect on the creditworthiness of the world’s largest gas producer.

"Obtaining such a credit rating by Dagong will further expand the base of investors from the Asia-Pacific region in debt instruments of Gazprom, including pension funds, insurance companies, investment funds and banks, as well as increasing the loyalty of Asian investors in the company," Gazprom said in a statement.

The rating shows Gazprom’s strong wealth creation capability, and “the very low degree of deviation between its available repayment sources and wealth creation capability,” reported Dagong.

The agency says the sanctions imposed by the US and the EU against Russia will have little effect on Gazprom’s creditworthiness. The credibility of Gazprom in local and foreign currency is very high, it goes on to say.

A high credit rating from Dagong allows Gazprom to place shares in Hong Kong, the agency’s president Guan Jianzhong said on Monday.

"The rating reflects a very high potential for the company," he said, adding that the outlook for Gazprom’s long-term credit rating will remain ‘stable’ over the next 1-2 years.

The agency kept the sovereign credit rating of Russia at A level with a stable outlook, which means a high level of credibility.

Complete story at - http://rt.com/business/228487-china-highest-rating-gazprom/