OREANDA-NEWS. National Rating Agency has affirmed its national scale 'A' credit rating on Pravovye Deistviya JSC, taking into account the support rating of 'RS3', reflecting the probability of support that the company can get from related parties. The outlook for the company's rating is negative. Pravovye Deistviya's stand-alone credit rating is 'BBB+' on the national scale.

The rating is supported by the company's strong solvency and transparent business structure. The capital adequacy has weakened, but is still within the current rating range. In addition, NRA notes the leadership position of IGSS, the company's key asset that holds a robust market share and is less vulnerable to negative trends in the oil and gas industry.

Russian oil companies' restricted access to international capital markets and operating revenue decrease on the back of oil price falls have resulted in hi-tech projects being frozen in favour of traditional ones, which are IGSS's area of focus.

The rating is constrained by the company's poorly diversified investment portfolio and concentrated revenue base, loss-making operations and heavy reliance on return on its financial investments.