Outlooks on Moscow and St. Petersburg Ratings Revised to Positive; 'B+' Ratings Affirmed
Feb 26, 2002
Standard & Poor's said it revised the outlooks on the ratings on the Russian cities of Moscow and St. Petersburg to positive from stable following a similar outlook revision on the Russian Federation ratings.
At the same time, Standard & Poor's affirmed its single-'B'-plus long-term credit and debt ratings on the two cities.
The outlook revision on the cities of Moscow and St. Petersburg follows revision of the sovereign outlook, a reflection of the continued improvement in Russia's policy environment, which has strengthened the country's economic structure and prospects. These improvements are reducing the country's dependence on and vulnerability to the volatile oil market.
"The positive developments in the Russian environment are driving general economic and financial improvement in the cities of Moscow and St. Petersburg, which is boosting liquidity and tax revenues," said Standard & Poor's Non-U.S. Public Finance credit analyst Bram Cartmell.
"Although economic reforms are having a positive influence on the cities, Standard & Poor's will monitor the effects of federal intergovernmental reforms, which redistribute tax revenues and responsibilities and could impact the creditworthiness of Russian local governments," said Elena Okorotchenko, Associate Director with Standard & Poor's London Public Finance team.
At the same time, Standard & Poor's affirmed its single-'B'-plus long-term credit and debt ratings on the two cities.
The outlook revision on the cities of Moscow and St. Petersburg follows revision of the sovereign outlook, a reflection of the continued improvement in Russia's policy environment, which has strengthened the country's economic structure and prospects. These improvements are reducing the country's dependence on and vulnerability to the volatile oil market.
"The positive developments in the Russian environment are driving general economic and financial improvement in the cities of Moscow and St. Petersburg, which is boosting liquidity and tax revenues," said Standard & Poor's Non-U.S. Public Finance credit analyst Bram Cartmell.
"Although economic reforms are having a positive influence on the cities, Standard & Poor's will monitor the effects of federal intergovernmental reforms, which redistribute tax revenues and responsibilities and could impact the creditworthiness of Russian local governments," said Elena Okorotchenko, Associate Director with Standard & Poor's London Public Finance team.