S&P affirms City of Surgut

Standard & Poor's said it affirmed its BB- long-term issuer credit rating and its ruAA- Russia national-scale rating on the City of Surgut, located in the Russian Federation, which is rated foreign-currency BBB+ with stable outlook, A-2, local-currency A- with stable outlook, A-2 and a Russia national-scale rating of ruAAA.

The outlook is stable.

The ratings are constrained by the local economy's high concentration in the oil industry, dominated by OJCS Surgutneftegas, along with a strong dependence on transfers from the Khanty-Mansiysk Autonomous Okrug and the city's limited financial flexibility.

These constraints are mitigated by the city's low debt burden, which S&P said does not expect to increase in the medium term, high wealth levels, better infrastructure quality than the Russian average and competent, prudent management, the agency said. The ratings also are supported by the city's higher wealth levels and quality of housing and utility infrastructure than the Russian average, which leads to less urgency for borrowings, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.