Fitch cuts Novosibirsk view to negative

Fitch Ratings said it changed the Russian Novosibirsk region's outlook to negative from stable. Its long-term foreign- and local-currency rating was affirmed at BB, short-term foreign-currency at B and national long-term rating at AA-(rus). The action affects RUB 2.6 billion of outstanding bonds.

The change in outlook reflects an expectation that the Novosibirsk region's operating margin will decrease to 6% to 8% by the end of 2009, due to lower tax revenues amid the prevailing economic slowdown, Fitch said.

The ratings reflect the region's sound but weakening budgetary performance, reduced direct debt risk and still sufficient liquidity, the agency said.

The ratings also take into account weaker operating revenue forecasts due to a slower regional economy, Fitch said, and an expected increase in indirect risk stemming from guarantees.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.