MOSCOW, July 9. /TASS/. The Chinese rating agency CSCI Pengyuan assigned a global long-term issuer credit rating of A-i and a corresponding China’s national rating of AAA to the Russian natural gas producer Novatek.

"The rating reflects that Novatek is positioned as a key player in the global liquefied natural gas (LNG) market, the second-largest natural gas producer in Russia, and the largest Russian supplier of LNG," the rating agency said.

"Novatek's core focus on the extraction, production, and distribution of natural gas (including LNG) and liquid hydrocarbons underscores its industry-leading operational efficiency and sustained profitability. The Company upholds a prudent and stable financial strategy with a conservative leverage profile. Its robust cash flow generation capabilities are deemed adequate to support planned capital expenditures and existing debt obligations," CSCI Pengyuan said.

The rating agency also recognizes presence of potential challenges.

"The adverse short-term fluctuations in oil and gas prices could impact Novatek's profitability. The progression of the Arctic LNG 2 project faces constraints due to Western sanctions, which impede the utilization of liquefaction capacity and affect investment returns. Furthermore, persistent energy dynamics, geopolitical tensions, and Western sanctions collectively present formidable challenges to the Company's operational resilience," CSCI Pengyuan added.