S&P lifts Yanao view to stable

S&P said it revised the outlook on Yamal-Nenets Autonomous Okrug (Yanao) to stable from negative.

The okrug is a gas-producing region in Russia's western Siberia, S&P said.

The agency also said it affirmed the region’s BB+ long-term issuer credit rating and ruAA+ Russia national scale rating.

As a sovereign entity, Yanao’s ratings are subject to certain publication restrictions and a pre-established calendar. Any deviations from the announced calendar are allowed only in limited circumstances.

In the case of Moscow, the rating change deviating from the calendar is attributed to the recent revision of the outlook on the Russian Federation to stable from negative.

The long-term rating on Yanao continues to be capped by the BB+ foreign-currency long-term sovereign rating on Russia based on a view that Russian local and regional governments cannot be rated higher than the sovereign, S&P said.

Yanao’s stand-alone credit profile is at BBB-, one notch higher than the region’s long-term rating, the agency said.

The ratings reflect the okrug’s average economy, which enjoys very high wealth, but is subject to concentration and has limited growth prospects, S&P said.

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