S&P rates Samara bond BB+

Standard & Poor's said it assigned a BB+ debt rating with a recovery rating of 3 and an ruAA+ Russia national scale rating to the 5.5-year amortizing senior unsecured bond of up to RUB 15 billion issued by Samara Oblast.

The oblast placed the first RUB 6.5 billion of the bond on June 20, 2012 and plans to place another RUB 3.5 billion in July 2012.

The recovery rating indicates 50% to 70% expected recovery in a default.

The ratings reflect the oblast's limited budgetary flexibility and predictability within a developing and unbalanced institutional framework, S&P said, as well as its low economic wealth and pressure from infrastructure development needs.

The ratings are supported by an expectation that the oblast will maintain a modest debt burden, positive liquidity and a moderate budgetary performance, the agency said.

© 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.