05 December 2003 02:04
S&P assings `ruA-` national scale rating to Tomsk proposed bond issue
MOSCOW. Dec 5 (Interfax) - Standard & Poor's Ratings Services assigned its 'ruA-' Russian national
scale senior unsecured debt rating to the Tomsk region's proposed 60 million ruble fixed-coupon domestic bond
issue, S&P said in a press release on Friday.
The issue will be placed on December 11 2003, and will have six quarterly coupon payments at 14%. The bonds will
mature in 2005. The rating on the bond is equalized with the national scale rating on the region.
The rating is constrained by its growing economic concentration, especially on its largest taxpayer, oil company
TomskNeft. Diversification prospects are limited by the region's remote location. The rating is also constrained by
Tomsk region's comparatively high debt service and risky debt profile, weak financial performance in the Russian
context, and low revenue flexibility and predictability. Tax- supported debt is expected to exceed 30% of total revenues
at the end of 2003. Debt maturities will remain relatively short and refinancing risk at the end of 2003 is high.
Factors supporting the rating include continuous economic growth in the region that is expected to exceed 7% in 2003,
competent management, and a good credit history. [RU ASIA EUROPE EEU EMRG DBT AAA] me <>
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