Moody`s reviews Naftogaz of Ukraine ratings

12:23, 10 August 2006
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And is likely to downgrade them

Moody`s Investors Service today placed the Ba3 foreign currency corporate family rating and the Ba2 senior unsecured foreign currency rating of NJSC Naftogaz of Ukraine on review for possible downgrade following recent statements made by the Ukrainian Government about the financial future of the company, according to Moody’s web site. In accordance with Moody`s GRI rating methodology the current ratings reflect a combination of the following inputs:

Baseline credit assessment of 14-16 (on scale of 1-21, where 1 represents lowest credit risk);

B1 local currency rating of the Ukrainian government

Low dependence

High support

Several factors could influence the possible outcome. The review will center upon: 1)  factors affecting the baseline credit assessment, such as a possible material deterioration of its financial profile and weakening credit metrics; and, 2) a review of assumptions regarding possible government support.

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