Moody's: Samara bond Aa1.ru

Moody's Interfax Rating Agency said it assigned an Aa1.ru national-scale rating to Oblast of Samara's RUB 12.2 billion bond. This senior unsecured amortized bond has a fixed rate and is due in November 2016.

The bond will be used to fund the oblast's budget deficit and to strengthen its liquidity position in view of forthcoming bond redemptions in 2011-12.

The Aa1.ru rating reflects the region's moderate debt burden, solid and stable liquidity position and its developed, albeit volatile, local economic base, the agency said.

The ratings are constrained by the volatility of key regional taxes, some expenditure rigidity in the region's budget and deterioration in its operating balances, arising from a fall in revenue associated with the recession in 2009, the agency added.

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