27 May 2003 04:34
S&P rates Khanty-Mansii proposed bond issue `ruAA`
MOSCOW. May 27 (Interfax) - Standard & Poor's Ratings Services has assigned its 'ruAA' Russian
national scale senior unsecured debt rating to the Khanty-Mansii autonomous district's proposed 3.0 billion ruble
($98 million) fixed-coupon domestic bond issue, the agency reported in a press release.
The issue will be placed on May 29 2003 and will have 10 coupon payments at 12% per year and a five-year
maturity.
The autonomous district has a foreign currency obligations rating of BB-, with a stable outlook, and a Russian scale
rating of ruAA.
Khanty-Mansii produces 55% of oil in Russia, making it one of the fiscally strongest and wealthiest regions, but also
one that is highly dependent on volatile oil prices. More than 70% of the autonomous district's tax revenues come
from Russia's five-largest oil-producing companies.
The rating is constrained "by low revenue predictability and flexibility," said Standard & Poor's
credit analyst Boris Kopeykin. "This is because of federal government controls, and particular vulnerability to
further redistribution of the natural resource extraction tax, which provided almost one-half of the region's
budget revenues in 2002."
Khanty-Mansii's ongoing investment in the local economy, based on its commitment to diversify and reduce
reliance on the oil sector, also represents a risk.
Supporting factors include its growing economy and relative wealth, and the low, albeit growing, debt level. [RU ASIA
EUROPE EEU EMRG AAA DBT GVD] me <>
[FTI [The Financial Times]] |
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