July 5 (Bloomberg) -- OAO Tatneft, a Russian oil producer based in the Tatarstan region, rallied to a three-month high after Moody’s Investors Service raised its credit rating to one step below investment grade.
Tatneft rose 2 percent to 197.68 rubles by the close in Moscow, the highest level since April 3. The Micex Index fell 0.6 percent to 1,435.76.
Moody’s upgraded Tatneft to Ba1 from Ba2, with a stable outlook, according to an e-mailed research note. The ratings company cited “strong” financial metrics, low cost levels and “substantial” oil reserves.
“Today’s rating action was prompted by the shift in Tatneft’s operating profile towards an integrated business model comprising sizeable downstream operations, as well as its robust operating and financial performance,” Julia Pribytkova, a Moody’s analyst, said in the research note.
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