S&P rates Vodokanal BB+

Standard & Poor's said it assigned its BB+ long-term, B short-term corporate credit ratings and its ruAA+ Russia national scale rating to Vodokanal St. Petersburg.

The outlook is stable.

S&P said it views Vodokanal as a government-related entity that benefits from the support of its 100% owner, the City of St. Petersburg, which is rated BBB- with stable outlook.

The ratings reflect the company's obsolete tangible assets and resulting heavy medium-term investment needs, high operating risk resulting from deteriorating water supply quality, tightening quality standards and a concentrated customer base.

These risks are offset by the company's strategic importance to St. Petersburg; strong ongoing financial support from the city and potential extraordinary support.

© 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.