Moody's rates Chuvashia bonds Ba2/Aa2.ru

Moody's Investors Service said it assigned a Ba2 global scale local-currency rating to the Republic of Chuvashia's bonds, which together total RUB 4.5 billion.

At the same time, Moody's Interfax assigned an Aa2.ru national scale rating to Chuvashia's bonds.

The rating on the bonds is derived from the region's issuer rating.

Moody's said the ratings reflect the republic's limited own-source tax revenue due to the underdevelopment and volatility of the regional economy, the growing rigidity of its operating expenditure and its weak liquidity position, which is not sufficient to mitigate short- to medium-term refinancing needs.

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