Chinese rating agency CSCI Pengyuan assigned a domestic triple A rating to US-blacklisted Russian oil giant Gazprom on Friday, as media reported Beijing was preparing to reopen its domestic bond market to major Russian energy firms.
"Gazprom's rating reflects its strategic importance and legal ties to the Russian government," CSCI Pengyuan said.
The firm's credit profile "is underpinned by its strong business profile as one of the market leaders in the global oil and gas industry and its important position in Russia's energy market", it added.
The "AAA" rating with a stable outlook came just days after Russia and China gave their blessings to the Power of Siberia 2 pipeline.
Gazprom made the announcement during Russian President Vladimir Putin's visit to China last week.
Late last month, senior Chinese financial regulators told top Russian energy executives that they would support their companies' plans to sell renminbi "panda bonds", the Financial Times reported on Sunday, citing sources.
Companies typically obtain the credit ratings before selling bonds in China.
However, CSCI Pengyuan cited "high geopolitical risks" associated with Gazprom, which was sanctioned by the US following the start of Russia-Ukraine war in 2022.
"Sanctions and geopolitical disruptions have adversely affected the company's operations, leading to a decline in gas export revenue and volume in 2023," the rating agency said.
"As the geopolitical landscape continues to evolve, operational uncertainties persist."
Last month, CSCI Pengyuan also assigned "AAA" credit rating to Zarubezhneft, a mid-scale upstream oil company fully owned by the Russia Federation.
