Moody's rates Chuvashia Ba2

Moody's Investors Service said it assigned a foreign-currency global-scale issuer rating of Ba2 to Republic of Chuvashia in Russia.

The outlook is stable.

The rating is in line with the existing local-currency global-scale rating of Ba2 with stable outlook assigned to the republic, Moody's said.

The ratings reflect its moderate debt burden that is expected to remain at current levels over the medium term, an improving tax-revenue stream and a recovery in operating margins, the agency said.

The ratings are constrained by the volatility of the regional economy, insufficiency of the republic's own-source budget revenue and its weak cash position, Moody's said.

The rating is supported by Chuvashia's moderate debt position, which increased somewhat to about 38% of operating revenue in 2010 from 31% a year earlier, the agency added.

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