S&P boosts Novosibirsk

Standard & Poor's said it raised its long-term issuer credit rating on the Russian City of Novosibirsk to B+ from B.

At the same time, the Russia national-scale rating was raised to ruA+ from ruA, the agency said.

The outlook remains positive.

According to S&P, the upgrade reflects the city's growing revenues, strengthening budgetary performance, reduced debt and improved debt profile.

The ratings on Novosibirsk, the third-largest city in the Russian Federation (foreign currency BBB+/stable/A-2, local currency A-/stable/A-2, Russia national-scale rating ruAAA), are constrained by the city's low financial flexibility due to municipal-sector salary growth and infrastructure spending and the need to improve medium-term financial planning, the agency noted.

S&P added that these constraints are mitigated by Novosibirsk's growing, diversified and service-oriented economy, increasing revenues and improving debt structure.

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