S&P: Russian governments improve

The ratings on Russian local and regional governments have continued to demonstrate rapid improvement in the past six months and are expected to continue improving in the medium term, according to a report by Standard & Poor's.

S&P rates 25 local and regional governments in The Russian Federation, including 17 regions and eight municipalities. Three governments, Moscow (foreign-currency BBB+/stable) and St. Petersburg (BBB-/positive) and Khanty-Mansiysk Autonomous Okrug (BBB-/stable) have investment-grade ratings. The ratings on other governments range between B- and BB+.

S&P said it expects the increased appetite for borrowing as Russian governments strive to improve their utility infrastructure, combined with the existing ban on net foreign-currency borrowing and other budget regulations, to lead to further new ratings being assigned to local and regional government-related entities in future.

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