S&P affirms B- for Russia's Klin Rayon

Standard & Poor's said it affirmed its B- foreign currency issuer credit and ruBBB- Russia national scale ratings on Klin Rayon, a district in the Moscow Oblast in The Russian Federation. The outlook is stable.

Klin Rayon's ratings are based on continued uncertainty owing to upcoming municipal reform, and Klin's low flexibility and predictability, similar to other districts, S&P said.

This is due to its dependence on discretionary transfers from Moscow Oblast's budget, low financial autonomy and continued consolidation of tax revenues in the Oblast budget, S&P said.

A major supporting factor, however, is Klin Rayon's strategic location on the main highway between Moscow and St. Petersburg, which helps attract investments and maintain high economic growth, S&P said.

The stable outlook reflects S&P's expectation that fast economic development and expected support from Moscow Oblast should help Klin Rayon to finance its infrastructure needs, growing salaries and wages.

If the municipal reform brings more predictability in Klin Rayon's revenues, ratings may be raised, S&P said.

If the municipal reform leads to a mismatch between revenues and expenditures, ratings on Klin Rayon may be put under pressure, S&P noted.

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