S&P downgrades Yamal-Nenets

Standard & Poor’s said it lowered the long-term issuer credit rating on Yamal-Nenets Autonomous Okrug to BB+ from BBB-, along with its Russia national scale rating to ruAA+ from ruAAA.

The outlook is negative.

The agency also said it removed the ratings from CreditWatch with negative implications, where they were placed in December.

The downgrades follow similar downgrades on the long-term foreign-currency sovereign credit rating on the Russian Federation to BB+ from BBB-.

The okrug’s stand-alone credit profile is assessed at BBB-.

The ratings reflect its average economy, which enjoys very high wealth levels, but has a high economic concentration and limited growth prospects, S&P said.

The ratings also are supported by strong liquidity, low debt and low contingent liabilities, the agency said.

The ratings are constrained by a view of Russia’s volatile and unbalanced institutional framework and weak financial management in an international context, S&P said.

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