S&P raises Vodokanal outlook to positive

Standard & Poor's said it revised its outlook on Vodokanal St. Petersburg to positive from stable, following the recent outlook revision on the City of St. Petersburg (BBB-/positive), the company's 100% owner.

At the same time, the BB+ long-term and B short-term corporate credit ratings and ruAA+ Russia national-scale ratings were affirmed, the agency said.

S&P added that the ratings on Vodokanal, the regional water utility operating in the City of St. Petersburg, reflect its aged tangible assets and resulting heavy medium-term investment needs, the high operating risk resulting from the deteriorating quality of its water supply, tightening quality standards, a concentrated customer base, historically difficult payment collection and uncertain timeliness of owner support.

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