Moody's improves rating outlooks on 12 Russian regions following sovereign change
MOSCOW. Feb 21 (Interfax) - Moody's Investors Service has changed to stable from negative the outlooks on the ratings of 12 regional and local governments (RLGs) in Russia and two government-related issuers (GRIs), the agency said in a press release.
The actions reflect "reduced systemic risk as the sovereign's credit profile stabilises," it said.
At the same time, Moody's has affirmed the ratings of these 14 issuers. Concurrently, Moody's has affirmed the ratings and maintained negative outlooks for four RLGs.
"These rating actions follow the stabilisation of Russia's credit profile as captured by Moody's change of outlook to stable from negative on Russia's government rating (Ba1) on February 17, 2017," Moody's said.
Specifically, Moody's has changed the outlook to stable and affirmed the ratings of the following 12 RLGs: City of Moscow (Ba1), City of St. Petersburg (Ba1), Republic of Bashkortostan (Ba2), Republic of Tatarstan (Ba2), Autonomous-Okrug (region) of Khanty-Mansiysk (Ba2), Moscow Oblast (Ba2), Samara Oblast (Ba3), Chuvashia Republic (Ba3), Krasnodar Krai (B1), Krasnoyarsk Krai (B1), Oblast of Nizhniy Novgorod (B1) and City of Volgograd (B2).
Additionally, the ratings were affirmed and the outlooks were changed to stable from negative of the following two GRIs: SUE Vodokanal of St. Petersburg (Ba2) and OJSC Western High-Speed Diameter (Ba3).
Conversely, Moody's affirmed the ratings and maintained the negative outlooks of the following four RLGs: Oblast of Omsk (Ba3), Republic of Komi (B1), City of Krasnodar (B1) and City of Omsk (B1).
The outlook change to stable from negative of City of Moscow, City of St. Petersburg, Republic of Bashkortostan, Republic of Tatarstan, Autonomous-Okrug (region) of Khanty-Mansiysk, Moscow Oblast, Samara Oblast, Chuvashia Republic, Krasnodar Krai, Krasnoyarsk Krai, Oblast of Nizhniy Novgorod and City of Volgograd reflects the decrease in systemic pressure following the change to stable outlook for Russia.