Cities of Moscow and St. Petersburg LT Ratings Raised to 'B+'; Outlooks Revised to Stable
Dec 20, 2001
Standard & Poor's today raised its long-term ratings on the cities of Moscow and St. Petersburg in the Russian Federation (B+/Stable/B) to single-'B'-plus from single-'B'. The outlooks are revised to stable from positive. (For a list of all rating actions see below).
The rating actions follow Standard & Poor's upgrade of its ratings on the Russian Federation to single-'B'-plus from single-'B' (see related press release on Russia issued today). The sovereign rating change reflects continued improvement in Russia's policy environment, which has strengthened the country's economic structure and bolstered economic prospects and policy flexibility.
Both Moscow and St. Petersburg benefit from the overall improvement in Russia and are experiencing sustained economic growth, boosting their liquidity and tax revenues. The cities' debt burdens are lower than 30% of operating revenues and all their revenues are in cash. On the other hand, the cities' performance will continue to be affected by limited predictability and flexibility of revenues, significant changes in the intergovernmental system, foreign currency exposure, and large infrastructure financing needs.
OUTLOOK: STABLE
The outlook reflects the cities' improving financial and economic situation, which is balanced by the stable outlook on the Russian Federation. RATINGS RAISED AND OUTLOOK REVISED TO STABLE
The rating actions follow Standard & Poor's upgrade of its ratings on the Russian Federation to single-'B'-plus from single-'B' (see related press release on Russia issued today). The sovereign rating change reflects continued improvement in Russia's policy environment, which has strengthened the country's economic structure and bolstered economic prospects and policy flexibility.
Both Moscow and St. Petersburg benefit from the overall improvement in Russia and are experiencing sustained economic growth, boosting their liquidity and tax revenues. The cities' debt burdens are lower than 30% of operating revenues and all their revenues are in cash. On the other hand, the cities' performance will continue to be affected by limited predictability and flexibility of revenues, significant changes in the intergovernmental system, foreign currency exposure, and large infrastructure financing needs.
OUTLOOK: STABLE
The outlook reflects the cities' improving financial and economic situation, which is balanced by the stable outlook on the Russian Federation. RATINGS RAISED AND OUTLOOK REVISED TO STABLE