S&P lifts Moscow to stable

S&P said it revised the outlook on the city of Moscow to stable from negative.

The agency also said it affirmed the city’s BB+ long-term issuer credit rating and ruAA+ Russia national scale rating.

As a sovereign rating, Moscow’s ratings are subject to certain publication restrictions and a pre-established calendar. Any deviations from the announced calendar are allowed only in limited circumstances.

In the case of Moscow, the rating change deviating from the calendar is attributed to the recent revision of the outlook on the Russian Federation to stable from negative.

The long-term rating on Moscow continues to be capped by the BB+ foreign-currency long-term rating on the Russian Federation because Russian local- and regional-governments cannot be rated higher than the sovereign, the agency said.

Moscow's stand-alone credit profile is assessed at BBB, which is two notches higher than the issuer credit rating, S&P said.

The ratings also consider Moscow's position as Russia's economic, administrative and financial center, the agency said.

This position underpins Moscow's very low debt, exceptional liquidity, strong budgetary performance and very low contingent liabilities, S&P said.

Moscow's average budgetary flexibility and average economy are neutral for the city's creditworthiness, the agency added.

But Moscow's ratings are constrained by Russia's volatile and unbalanced institutional framework, S&P said.

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