TEXT-S&P summary: OAO NOVATEK

(The following statement was released by the rating agency)

March 30 -

===============================================================================

Summary analysis -- OAO NOVATEK ----------------------------------- 30-Mar-2012

===============================================================================

CREDIT RATING: BBB-/Stable/-- Country: Russia

Primary SIC: OIL AND GAS

EXTRACTION

===============================================================================

Credit Rating History:

Local currency Foreign currency

23-Jun-2010 BBB-/-- BBB-/--

11-Jul-2008 BB+/-- BB+/--

26-Sep-2007 BB/-- BB/--

===============================================================================

Rationale

The rating on Russia-based gas extraction group OAO NOVATEK reflects what Standard & Poor's Ratings Services views as the group's "satisfactory" business risk profile and "intermediate" financial risk profile.

NOVATEK's key strengths include its position as Russia's largest independent natural gas producer, with a long reserve base, and high profitability demonstrated by robust free operating cash flow (FOCF) generation in recent years. The rating is also supported by NOVATEK's currently robust credit metrics.