Fitch: Yamal-Nenets bonds BBB-

Fitch Ratings said it assigned an expected BBB- long-term local-currency rating to Yamal-Nenets Autonomous District's domestic bonds, along with an expected national long-term rating of AAA(rus).

The rating on the bonds is aligned with the district’s issuer default rating on the basis that they constitute a senior and unsecured obligation of the region, Fitch said.

The bonds will rank pari passu with all present and future unsecured and unsubordinated obligations, the agency said.

The ratings are constrained by the Russian sovereign ratings, Fitch added, and reflect the district's low debt, sound budgetary performance and high cash reserves.

The ratings also consider the district's concentrated economy, large capital expenditure needs and a weak institutional framework for Russian sub-nationals, the agency said.

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