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Fitch Revises 5 Russian LRGs' Outlook to Negative; Affirms Ratings
March 24, 2014 / 2:55 PM / 3 years ago

Fitch Revises 5 Russian LRGs' Outlook to Negative; Affirms Ratings

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Five Russian Subnationals - Rating Action Report here MOSCOW/MILAN/LONDON, March 24 (Fitch) Fitch Ratings has revised the Outlook on Russian cities of Moscow and Saint Petersburg, Tatarstan Republic, Tyumen Region and Khanty-Mansyisk Autonomous Region to Negative from Stable. The agency has affirmed the five local and regional governments' Long-term foreign and local currency Issuer Default Ratings (IDRs). The issue ratings on Moscow's and Saint Petersburg's senior unsecured local currency bonds have also been affirmed. A full list of rating actions is presented below. Under EU credit rating agency (CRA) regulation, the publication of International Public Finance reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations. Fitch interprets this provision as allowing us to publish a rating review in situations where there is a material change in the creditworthiness of the issuer that we believe makes it inappropriate for us to wait until the next scheduled review date to update the rating or Outlook/Watch status. The next scheduled review date for Fitch's rating on Khanty-Mansyisk Autonomous Region was 4 April 2014, for the City of Saint Petersburg 23 May 2014, for Tatarstan Republic 25 July 2014, and for the City of Moscow and Tyumen Region was 6 June 2014. However, following the recent Outlook revision of Russia (see Fitch Revises Russia's Outlook to Negative; Affirms at 'BBB' dated 21 March 2014 at www.fitchratings.com) we have taken a similar rating action on these issuers as they are rated at the same level as the sovereign. KEY RATING DRIVERS The revision of Outlook of the City of Moscow, the City Saint Petersburg, Tatarstan Republic, Tyumen Region and Khanty-Mansyisk Autonomous Region reflects the application of Fitch's 'International Local and Regional Governments Rating Criteria outside United States'. Under our criteria, a local or regional government can be rated above the sovereign only in exceptional circumstances. RATING SENSITIVITIES A downgrade of Russian Federation would lead to a downgrade of the issuers. The rating actions are as follows: City of Moscow Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable Short-term foreign currency IDR affirmed at 'F3' Senior unsecured local currency bond ratings affirmed at 'BBB'/'AAA(rus)' City of Saint Petersburg Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable Short-term foreign currency IDR affirmed at 'F3' Senior unsecured local currency bond ratings affirmed at 'BBB'/'AAA(rus)' Tatarstan Republic Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable Short-term foreign currency IDR affirmed at 'F3' Tyumen Region Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable Short-term foreign currency IDR affirmed at 'F3' Khanty-Mansyisk Autonomous Region Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable Short-term foreign currency IDR affirmed at 'F3' A credit analysis on the City of Moscow, the City of Saint Petersburg, Tatarstan Republic, Tyumen Region and Khanty-Mansyisk Autonomous Region are available at www.fitchratings.com. Contact: Primary Analysts Konstantin Anglichanov (City of Saint Petersburg, Tyumen Region and Khanty-Mansyisk Autonomous Region) Director +7 495 956 99 94 Fitch Ratings CIS Ltd 26 Valovaya Street Moscow 115054 Vladimir Redkin (City of Moscow, Republic of Tatarstan) Senior Director +7 495 956 9901 Fitch Ratings CIS Ltd 26 Valovaya Street Moscow 115054 Secondary Analysts Konstantin Anglichanov (City of Moscow) Director +7 495 956 99 94 Behruz Ismailov (City of Saint Petersburg, Tyumen Region and Khanty-Mansyisk Autonomous Region) Associate Director +7 495 956 99 80 Victoria Semerkhanova (Tatarstan Repubic) Associate Director +7 495 956 99 65 Committee Chairperson Raffaele Carnevale Senior Director +39 02 87 90 87 203 Media Relations: Julia Belskaya von Tell, Moscow, Tel: +7 495 956 9908, Email: julia.belskayavontell@fitchratings.com; Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria 'Tax-Supported Rating Criteria' dated 14 August 2012, 'International Local and Regional Governments Rating Criteria outside United States' dated 9 April 2013 and 'Rating of Public Sector Entities Outside the United States' dated 4 March 2013 are available at www.fitchratings.com. Applicable Criteria and Related Research: Tax-Supported Rating Criteria here International Local and Regional Governments Rating Criteria here Rating of Public Sector Entities - Outside the United States here Additional Disclosure Solicitation Status here ALL 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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