LUKOIL Capital DAC -- Moody's places ratings of 51 Russian corporates on review for downgrade

Rating Action: Moody's places ratings of 51 Russian corporates on review for downgradeGlobal Credit Research - 02 Mar 2022Follows the placement on review for downgrade of Russia's sovereign ratingLondon, 02 March 2022 -- Moody's Investors Service ("Moody's") has today placed on review for downgrade all ratings of 51 Russian non-financial corporates, as well as Baseline Credit Assessments in the case of Government-Related Issuers. Today's rating actions follow the sovereign rating action on the Government of Russia which took place on 25 February 2022, where Moody's placed the Government of Russia's Baa3 long-term issuer (domestic and foreign currency) and senior unsecured (domestic and foreign currency) ratings as well as the P-3 Other Short Term (domestic currency) rating on review for downgrade; Russia's local- and foreign-currency country ceilings remained unchanged at Baa1 and Baa2, respectively.The placement of Russia's sovereign ratings on review for downgrade was triggered by Russia's further military operation in Ukraine which started on 24 February 2022, and reflects the negative credit implications for Russia's credit profile from the additional and more severe sanctions being imposed. The review period will allow Moody's to evaluate the scale of the military conflict and the impact of further sanctions including their scope, the sectors targeted and the degree of coordination between Western countries and ultimate severity of their impact on Russia's credit profile. For additional information, please refer to the related announcement https://www.moodys.com/research/--PR_461633.Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463395 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGSToday's rating actions on the affected corporates are a direct consequence of the sovereign rating action and reflect Moody's view that a potential downgrade of Russia's sovereign ratings and lowering of its country ceilings could or would lead to downgrades of the affected corporates' ratings, because of their strong interlinkages with the sovereign rating.The review for downgrade, in particular, will take into account (1) Russia's sovereign ratings and country ceilings following the conclusion of the sovereign review; (2) the affected corporates' individual credit factors, including the effect of sanctions on their credit quality; and (3) the likelihood of potential state support to the corporates in the event of financial distress.PRINCIPAL METHODOLOGIES The principal methodology used in rating PJSC PhosAgro, PhosAgro Bond Funding DAC, Sibur Holding, PJSC and Sibur Securities DAC was Chemical Industry published in March 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1152388. The principal methodology used in rating PAO Novatek and Novatek Finance Limited was Independent Exploration and Production published in August 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1284973. The principal methodologies used in rating Gazprom, PJSC, Bashneft PJSOC, Gazprom Neft PJSC, GPN Capital S.A., PJSC Oil Company Rosneft, Rosneft International Finance Limited, Tatneft PJSC, Gaz Finance Plc and Gaz Capital S.A. were Integrated Oil and Gas Methodology published in September 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1172345, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating Metalloinvest Finance D.A.C., PJSC Polyus, Polyus Finance Plc, MMC Norilsk Nickel, PJSC and MMC Finance DAC was Mining published in October 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1292752. The principal methodologies used in rating ALROSA PJSC and Alrosa Finance S.A. were Mining published in October 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1292752, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating Federal Passenger Company JSC was Passenger Railways and Bus Companies published in December 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1299262. The principal methodology used in rating Idgc Of Urals, Jsc, Rosseti Center and Volga region, PJSC, Rosseti Lenenergo, PJSC, Rosseti Moscow Region, PJSC and Rosseti Volga, PJSC was Regulated Electric and Gas Networks published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225. The principal methodologies used in rating Rosseti, Pjsc, Federal Grid Finance D.A.C., FGC UES, PJSC and Transneft, PJSC were Regulated Electric and Gas Networks published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodologies used in rating Sovcomflot PAO and SCF Capital Designated Activity Company were Shipping published in June 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1276306, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating NLMK, Steel Funding D.A.C., Magnitogorsk Iron & Steel Works, MMK International Capital DAC, Pao Severstal and Steel Capital S.A.was Steel published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296098. The principal methodologies used in rating Russian Railways Joint Stock Company and RZD Capital PLC were Surface Transportation and Logistics published in December 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296092, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating Mobile Telesystems Public Joint Stock Company and MTS International Funding Limited was Telecommunications Service Providers published in January 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1055812. The principal methodologies used in rating Atomenergoprom, JSC, Inter RAO, PJSC, RusHydro Capital Markets DAC and RusHydro, PJSC were Unregulated Utilities and Unregulated Power Companies published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1066389, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating Lukoil, PJSC, LUKOIL Capital DAC and LUKOIL International Finance B.V. was Integrated Oil and Gas Methodology published in September 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1172345. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. REGULATORY DISCLOSURESThe List of Affected Credit Ratings announced here are a mix of solicited and unsolicited credit ratings. For additional information, please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com. Additionally, the List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463395 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items: • EU Endorsement Status • UK Endorsement Status • Rating Solicitation • Issuer Participation • Participation: Access to Management• Participation: Access to Internal Documents• Releasing Office• Person Approving the Credit RatingFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. 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