26 April 2004 06:47
S&P gives Moscow region Bond ruA+ Russia scale rating
MOSCOW. April 26 (Interfax) - Standard & Poor's has assigned its 'ruA+' Russia national scale
rating to the proposed Russian ruble (RUR) 9.6 billion (about $330 million) senior unsecured bond to be issued by the
Moscow region (foreign currency B+/Positive/--; Russia national scale rating 'ruA+'), the agency reported in a
press release.
The rating on the bond is equalized with the national scale rating on the region. The issue will be placed on April
27, 2004. It will have 18 coupon payments, of 11% per year each, and a five-year maturity. The first coupon period will
have a maturity of 273 days, the second and subsequent periods will have a maturity of 91 days.
"The Moscow region continues to accumulate its debt, which will double in 2004. Direct debt, however, is
unlikely to exceed a manageable 45% of operating revenues in the next three to four years," said Standard &
Poor's credit analyst Felix Ejgel.
Debt accumulation is mitigated by an improved debt-monitoring system and longer debt maturities. Long-term debt is
expected to make up 80% of total debt in 2004, compared with only 53% in 2002 and none in 2001.
The ratings on the region also incorporate its limited financial flexibility as a result of the federal control over
much of regional revenues and expenditures, and high financing needs.
The ratings on the Moscow region are supported by its proximity to the Russian capital of (foreign currency
BB+/Stable/--), which has resulted in rapid economic growth in the food industry, trade, and recreation sectors, and
should lead to an increase in budgetary revenue. [RU EUROPE EEU ASIA EMRG ISU GVD AAA]
[Interfax] |
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