-Russia's Astrakhan region gets B+ rating from Fitch.
BANKING AND CREDIT NEWS-December 19, 2011--Russia's Astrakhan region gets B+ rating from Fitch(C)2011 M2 COMMUNICATIONS http://www.m2.com
19 December 2011 - Fitch set on Friday a long-term foreign and local currency rating of B+ to Russia's Astrakhan region, as well as a short-term foreign currency rating of B and a nationl long-term rating of A(rus).
The long-term ratings have a "stable" outlook.
The ratings considers the modest size of Astrakhan's budget and local economy with lower-than-average wealth indicators and high direct risk stemming from short-term bank loans, which poses considerable refinancing pressure, Fitch said.
They also reflect the region's sustained sound operating performance, which is gradually recovering after temporary weakening in 2010, as well as low contingent risk.
If the region reinforces its debt coverage ratios and trim refinancing risk by extending its debt maturity profile, the agency may upgrade the ratings. On the other hand, weak operating performance with close to zero margins and further growth of short-term debt could translate into negative rating action.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Dec 19, 2011|
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