S&P lifts Crimea to positive

Standard & Poor's said it revised the outlook on the Autonomous Republic of Crimea to positive from stable.

The agency also said it affirmed its B- long-term issuer credit rating and raised its Ukraine national scale rating to uaBBB from uaBBB-.

The outlook revision reflects a view that Crimea will experience revenue growth and maintain a modest debt burden, S&P said.

The ratings consider Crimea's lack of revenue predictability and low financial flexibility on the revenue and expenditure sides, the agency said, in the volatile and underfunded Ukrainian system of interbudgetary relations.

The ratings also take into account its low wealth levels and high expenditure needs, S&P added.

These weaknesses are mitigated by expectations that Crimea's debt and debt service will remain modest over the next few years, the agency said.

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