S&P rates Moscow ruAAA

Standard & Poor's said it assigned a Russia national scale rating of ruAAA to Russia's capital city of Moscow.

The BBB long-term global scale rating and stable outlook are unaffected.

The ratings primarily reflect the BBB foreign-currency long-term rating on the Russian Federation, S&P said.

The global scale ratings on Moscow are now capped by the long-term foreign-currency rating on the sovereign, so S&P said it assigned the highest possible national scale rating to Moscow.

The ratings reflect the city's position as Russia's economic, administrative and financial center, the agency said, as well as its diverse, service-based economy with wealth levels well above the national average.

They are supported by Moscow's very positive liquidity position and low debt, Fitch added.

Offsetting these positives is Russia's developing and unbalanced system of interbudgetary relations with low flexibility, the agency said. The distribution of revenues and expenditures largely depends on central-government decisions, Fitch said.

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