S&P boosts Moscow

Standard & Poor's said it raised its long-term foreign currency issuer credit rating on the City of Moscow from BBB+ from BBB based on the city's strong financial and economic indicators and declining debt.

The outlook is stable.

At the same, the senior unsecured debt rating was raised to BBB+ from BBB, the agency said.

S&P added that the upgrade follows the recent upgrade of the ratings on The Russian Federation (foreign currency BBB+/stable/A-2, local currency A-/stable/A-2) that took place on Sept. 4, noting that the ratings on Moscow reflect its position as Russia's economic, political and financial center and its diverse, growing, service-based economy, with wealth levels well above the Russian national average.

By contrast, low predictability of intergovernmental relations in Russia, uncertainty regarding the city's long-term financial policy and pressing needs to develop infrastructure, especially in the transport sector, constrain the ratings, the agency said.

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