S&P lifts Yamal-Nenets

Standard & Poor's said it raised its long-term foreign currency issuer credit rating on Yamal-Nenets to BB- from B+.

The outlook is stable.

At the same time, S&P raised its Russia national-scale ratings on the Okrug to AA-(ru) from A+(ru).

The upgrade reflects improved liquidity and stronger-than-expected budgetary performance, which was achieved despite redistribution of a portion of Yamal-Nenet's tax revenues in favor of the Tyumen Oblast, S&P said.

The ratings are also supported by strong revenue growth and high wealth level, the agency noted.

Conversely, the ratings are constrained by Yamal-Nenets' high dependence on the natural gas and oil extraction sectors, particularly on OAO Gazprom (BB-/stable), S&P added.

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