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Fitch Affirms Stavropol Region at 'BB'; Outlook Stable
December 12, 2013 / 4:47 PM / 4 years ago

Fitch Affirms Stavropol Region at 'BB'; Outlook Stable

MOSCOW, December 12 (Fitch) Fitch Ratings has affirmed Stavropol Region's Long-term foreign and local currency ratings at 'BB' and its National Long-term rating at 'AA-(rus)' with Stable Outlooks. The Short-term foreign currency rating is affirmed at 'B'. The region's outstanding senior unsecured domestic bonds (ISINs RU000A0JTFZ1, RU000A0JU9G2) of RUB10bn have also been affirmed at 'BB' and 'AA-(rus)'. KEY RATING DRIVERS The rating affirmation reflects Fitch's expectations that the region will maintain moderate direct risk with an improving maturity profile and a positive operating balance at 3% of operating revenue per annum in 2013-2015. The ratings also factor in a persistent budget deficit due to increasing pressure from operating and capital expenditure and the region's below-national average wealth and economic indicators. Fitch expects the region's direct risk will remain below 35% of current revenue during 2014-2015 despite a notable increase during the last two years. The agency expects the region will use part of its RUB3.7bn (as of 1 October 2013) cash to cover its budget deficit, therefore limiting debt growth.International Local and Regional Governments Rating CriteriaAdditional Disclosure Solicitation StatusALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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