Moody’s upgraded Russian oil firm Lukoil from Ba1 to Baa2 yesterday, taking it to investment-grade. The upgrade was triggered by Lukoil’s track record of strong operational and financial performance, as well as Moody's view that the operating environment for privately owned Russian oil companies in general, and Lukoil in particular, has stabilised.
Venezuela’s Ministry of Finance cancelled debts worth 670 billion bolivars ($255 million) owed to it by the country’s central bank in May. The cancellation cut Banco Central de Venezuela’s debts by 51%. Venezuela’s domestic debt stood at 30.4 trillion bolivars ($11.59 billion) at the end of the first quarter of 2006.
Fitch ratings raised concerns about Taiwan's ongoing political problems. While political upheavals are unlikely to affect Taiwan's sovereign credit rating, continued political problems could affect economic growth and reforms. Taiwan's foreign currency rating is A+ and its local currency rating is AA, both with a stable outlook. Political problems could also affect consumer and investor confidence, Fitch’s report said.
A senior official in Thailand’s energy Ministry said that the country’s crude oil demand could contract by as much as 8% this year. The government had earlier estimated a drop of 4%, but demand for crude oil has already declined by 5% for the first half of the year. The elimination of fuel subsidies combined with incentives for motorists to use bio fuels contributed to the drop, said Rujiprapa.