S&P upgrades Irkutsk

Standard & Poor's said it raised Irkutsk Oblast's long-term issuer credit rating and senior unsecured debt to B+ from B. The recovery rating on the debt is unchanged at 3.

The outlook is positive.

The upgrade reflects a view that the oblast's commitment to cost-containment measures in combination with rising corporate profit tax has led to a consistently strong budgetary performance, S&P said.

Moreover, improving self-funding capacity accompanied by accumulation of cash reserves and gradual debt amortization is reducing the oblast's refinancing risk, the agency said.

The ratings also consider the view that Irkutsk's debt profile is still relatively short term, though improving, S&P said.

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