S&P lowers Mosvodokanal, Vodokanal St. Petersburg

Standard & Poor’s said it lowered the corporate credit ratings on Mosvodokanal JSC to BB+/B from BBB-/A-3.

The agency also said it lowered the long-term corporate credit rating on Vodokanal St. Petersburg to BB from BB+ and affirmed its B short-term rating.

The outlook on both companies is negative.

S&P also said it lowered the Russia national scale rating on Mosvodokanal to ruAA+ from ruAAA and the Russia national scale rating on Vodokanal St. Petersburg to ruAA from ruAA+.

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

The downgrades on Mosvodokanal follow a similar rating action on the City of Moscow, S&P said. There is still a very high likelihood that the city government would provide timely and sufficient extraordinary support to Mosvodokanal in the event of financial distress, the agency said.

S&P also said it continues to assess Mosvodokanal’s stand-alone credit profile as BB+.

The rating action on Vodokanal St. Petersburg also follows a similar rating action on the City of St. Petersburg, the agency said. There is still a very high likelihood that the city government would provide timely and sufficient extraordinary support to the company in the event of financial distress, S&P said.

The agency also said it assesses Vodokanal St. Petersburg’s stand-alone credit profile as BB-.

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