S&P: Balashikha view stable

Standard & Poor's said it revised the outlook on Balashikha City District to stable from positive on concerns regarding its commitment to prioritize debt service when faced with increased budgetary pressures and difficult credit market conditions.

The B long-term issuer credit rating and the ruA Russia national scale rating were affirmed.

Ratings reflect the city's high dependence on decisions and financial transfers from the oblast, which are sometimes unpredictable, the agency said.

The rating also incorporates Balashikha's exposure to short-term debt, low revenue and expenditure flexibility and concerns regarding Balashikha's debt management policies, S&P added.

These constraints are mitigated by the growth in the city district's economy, boosted by its strategic location near the city of Moscow (BBB+/stable), the related budget revenue growth and modest borrowing plans, the agency noted.

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