S&P upgrades Volgograd

Standard & Poor's said it raised its long-term issuer credit rating on the Russian Volgograd Oblast to BB+ from B+ and its Russia national scale rating to ruAA+ from ruA+.

The outlook is stable.

The agency said the upgrade reflects the oblast's continued sound budgetary performance and improvements in medium-term financial and debt planning. The ratings are supported by good budgetary performance, commitment to maintain a moderate debt burden in the medium term and improve debt structure and the administration's efforts to attract investment.

The ratings are constrained by restricted flexibility and predictability of revenues and expenditures, revenue volatility, pressure on liquidity due to taxpayer concentration and low wealth levels compared with those of Russian peers, S&P said.

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