Printer Friendly

-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.

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2011 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 Banking & Credit News (BCN)
Date:Dec 19, 2011
Words:181
Previous Article:-BTMU's unit to redeem GBP275m subordinated notes on 20 Jan.
Next Article:-ARIAD Pharmaceuticals stock offering underwriters use greenshoe in full.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters