S&P lowers Novosibirsk view to negative

Standard & Poor’s said it revised the outlook on the Russian city of Novosibirsk to negative from stable.

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

The outlook revision follows the recent downgrade of the rating on the Russian Federation to BB+ from BBB-, S&P said.

Novosibirsk’s stand-alone credit profile is still assessed at BB+, S&P said.

The ratings are constrained Novosibirsk’s relatively weak economy and Russia’s volatile and unbalanced institutional framework, which limits the city’s weak budgetary flexibility and predictability, the agency said.

These constraints are mitigated by Novosibirsk’s satisfactory management quality and reasonable cost control, which results in average budgetary performance, adequate liquidity, low debt and low contingent liabilities, S&P said.

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