LONDON Dec 8 Glencore's decision to
acquire a stake in Russian state oil giant Rosneft is
not financially risky, Moody's credit ratings agency said, and
does not mark any shift from the miner-trader's new policy of
limiting its debt levels.
Russia said on Wednesday it had sold a 19.5 percent stake in
Rosneft to Qatar and Glencore for a total of 10.5 billion euros
Glencore is financing part of the deal with 300 million
euros of its own equity, with the rest financed by the Qatar
Investment Authority and non-recourse bank financing.
"Looking at the preliminary terms of the Rosneft
transaction, we consider Glencore's intended commitments to be
limited," Elena Nadtotchi, vice president and analyst for
Glencore at Moody's, said in an emailed response to a question
She added they were in line with Glencore's statement to
investors last week that it was aiming for a net debt to EBITDA
(earnings before interest, tax, depreciation and amortisation)
ratio of a maximum of 2:1 rather than 3:1 as in the past as it
seeks strong investment grade credit ratings.
Last year's commodity prices rout drove the big miners to
embark on asset sales and bond issuance and buybacks to repair
their balance sheets.
Glencore's turnaround has spurred a more than 230 percent
rise in its share price this year, making it one of the top
performers on the FTSE bluechip index.
News of the Rosneft deal drove it up a further 2 percent on
Thursday, compared with a 1.3 percent rise in the broader
As part of the Rosneft deal, Glencore will get an additional
200,000 barrels per day for its marketing business, prompting
Bank of America Merrill Lynch to comment "lots of oil for little
($1 = 0.9432 euros)
(Reporting by Barbara Lewis; Editing by Adrian Croft)