Moody's rates Mordovia bond B1

Moody's Investors Service said it assigned a B1 global scale local-currency rating to the Republic of Mordovia's recently issued bond totaling RUB 3 billion.

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

This amortized senior unsecured bond has a fixed coupon and are due in 2018. The proceeds will be used to fund the Republic's financing deficit and to refinance forthcoming debt payments.

Mordovia's B1 issuer rating reflects the republic's very high debt burden relative to its Russian peers, its limited own-source tax revenue and its weak liquidity profile, Moody's said. The rating pressures are somewhat mitigated by historically substantial federal government subsidies and investments to the region.

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