S&P: Balashikha view positive

Standard & Poor's said it revised the outlook on the Balashikha City District, formerly Balashikha Rayon, to positive from stable on expectations of more predictable financials, consistently stable and relatively strong financial performance and more prudent debt policy.

S&P raised the Russia national scale rating to ruA from ruA- and affirmed the B long-term issuer credit rating. The city district is located in the Moscow Oblast (BB/positive; Russia national scale ruAA) in the Russian Federation (foreign-currency BBB+/stable/A-2; local-currency A-/Stable/A-2; Russia national scale ruAAA).

The ratings reflect the city district's high dependence on decisions made by the oblast and the sovereign, which results in exposure to short-term inter-budgetary debt, low revenue and expenditure flexibility, the agency said.

These constraints are mitigated by good growth in the city district's economy, boosted by its strategic location near Moscow (BBB+/stable), the related budget revenue growth and modest borrowing plans, S&P said.

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