(The following statement was released by the rating agency)
Nov 27 - Fitch Ratings has assigned the Russian city of St. Petersburg’s upcoming RUB7bn domestic bond, due 1 June 2017, an expected Long-term local currency rating of ‘BBB(EXP)’ and an expected National Long-term rating of ‘AAA(rus)(EXP)'.
The final rating is contingent upon the receipt of final documents conforming to information already received.
The city’s Long-term foreign and local currency ratings are ‘BBB’ with a Stable Outlook. The city has a Short-term foreign currency rating of ‘F3’, and a National Long-term rating of ‘AAA(rus)’ with a Stable Outlook.
The bond has nine semi-annual coupon periods with a fixed coupon rate to be determined at the auction scheduled on 6 December 2012. The proceeds from the bond will be used to fund the city’s budget deficit.
Saint-Petersburg is the second-largest city in Russia by population and a port on the Baltic Sea. The city contributed 4.5% of national GDP and made up 3.4% of Russia’s total population in 2010.
A credit analysis on the City of St. Petersburg is available on www.fitchratings.com.