S&P lowers Khanty-Mansiysk

Standard & Poor’s said it lowered the long-term issuer credit rating on Khanty-Mansiysk Autonomous Okrug to BB+ from BBB-, along with its Russia national scale rating to ruAA+ from ruAAA.

The outlook is negative.

The agency also said it removed the ratings from CreditWatch with negative implications, where they were placed in December.

The downgrades follow the recent downgrade of the long-term foreign-currency sovereign credit rating on the Russian Federation to BB+ from BBB-.

The okrug’s BBB- stand-alone credit profile reflects its low debt, low contingent liabilities, average budgetary performance and adequate liquidity, S&P said.

Khanty-Mansiysk’s high wealth levels are mitigated by high economic concentration and only limited growth prospects, the agency said.

The ratings are constrained by Russia’s volatile and unbalanced institutional framework and weak budgetary flexibility, as well as the okrug’s weak financial management in an international context, S&P added.

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