S&P assigns Novosibirsk bond BB

Standard & Poor's said it assigned its BB long-term and ruAA Russia national scale issue ratings to the amortizing senior unsecured seven-year bond of RUB 5 billion (about $160 million) to be issued by Russia's City of Novosibirsk.

S&P said the ratings on Novosibirsk are constrained by what it sees as limited financial flexibility and predictability, mostly resulting from Russia's developing and unbalanced public finance system, and low economic productivity.

These constraints are mitigated by Novosibirsk's moderate debt, "neutral" liquidity supported by prudent debt management and the city's improved budgetary performance achieved through cost discipline, the agency added.

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