Yukos Investors Beware

Moody's Investors Service has placed the senior credit rating 'Ba1' and unsecured liabilities rating 'Ba2' of YUKOS on rating watch. This decision came from pressure on the company and the possibility of penalties from the state.

The agency is also concerned about large tax arrears of YUKOS for 2000, charges against the management and shareholders of the company, and the situation related to termination of the merger deal with Sibneft.