Moody's upgrades Moscow rating outlook to positive
Sep 12, 2002
London, 12 September 2002 - Moody's Investors Service today changed the outlook on the City of Moscow's Ba3 foreign currency and domestic currency ratings to positive from stable.
The rating agency noted that the City has consistently been able to increase its revenue base, despite numerous changes in federal tax law, and also that the City's debt burden is expected to remain at a manageable level. The City retains a large amount of expenditure flexibility, with approximately 40% of operating revenues directed towards capital expenditure.
Moody's commented that, as with other Russian regions, greater predictability in the intergovernmental framework and tax redistribution system would be positive for the City's creditworthiness. In addition, greater transparency in the City's shareholdings of companies is also needed.
The rating agency noted that the City has consistently been able to increase its revenue base, despite numerous changes in federal tax law, and also that the City's debt burden is expected to remain at a manageable level. The City retains a large amount of expenditure flexibility, with approximately 40% of operating revenues directed towards capital expenditure.
Moody's commented that, as with other Russian regions, greater predictability in the intergovernmental framework and tax redistribution system would be positive for the City's creditworthiness. In addition, greater transparency in the City's shareholdings of companies is also needed.