Moody's: Samara bond Aa1.ru

Moody's Interfax Rating Agency said it assigned an Aa1.ru national scale rating to the Oblast of Samara's new RUB 8.3 billion of fixed-rate senior bonds due July 2020.

Proceeds will be used to fund the oblast's financing deficit and to strengthen its liquidity position ahead of bond redemptions in 2013-14.

The agency said the oblast's Aa1.ru issuer rating - from which the bond rating is derived - reflects the region's moderate and stable debt burden, its solid and stable liquidity position and its relatively developed, albeit volatile, local economic base.

At the same time, the rating is constrained by the volatility of key regional taxes, particularly corporate income tax, which stems from the local economy's exposure to energy price volatility and national economic cycles, Moody's said.

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