S&P: Minsk on watch

Standard & Poor's said it placed the B long-term issuer credit rating on the city of Minsk on CreditWatch with negative implications.

The watch placement follows a similar rating action on the Republic of Belarus, S&P said.

The agency said it views the institutional framework for Belarusian local and regional governments as centralized and unpredictable, granting little flexibility to local authorities.

Minsk, therefore, does not meet the conditions to be rated above the sovereign and its long-term rating is capped at the level of the long-term sovereign credit rating on Belarus, S&P said.

The rating on Minsk considers the city's limited budget predictability and flexibility, large infrastructure needs and high contingent liabilities, the agency added.

Factors supporting the rating are the city's status as the country's largest administrative, financial and commercial center, along with its consistently strong operating surplus and good liquidity, S&P said.

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