OREANDA-NEWS. January 26, 2016. Fitch Ratings says in its latest Russian Oil and Gas Dashboard that the sovereign rating and taxes are currently the main credit drivers in the sector.

The credit profiles of Fitch-rated Russian oil and gas companies should remain robust even under Fitch's revised oil price deck, which assumes Brent averaging USD45/bbl in 2016, USD55/bbl in 2017 and USD65/bbl in 2018. However, if oil prices remain below these levels for longer, there is an increased risk of further tax hikes, similar to that announced in October 2015.

The sovereign rating will remain another important driver of the oil companies' ratings. In October 2015, Fitch affirmed Russia at 'BBB-' with Negative Outlook, which suggests that a downgrade is possible. This in turn would trigger downgrades of higher-rated oil and gas companies, as their ratings are capped by that of the sovereign.