S&P: Khanty-Mansiysk view negative

Standard & Poor's said it revised the outlook on Khanty-Mansiysk Autonomous Okrug to negative from stable and affirmed its BBB- long-term issuer credit rating and ruAAA Russia national scale rating.

"The outlook revision reflects the likelihood of lower revenues and a weaker budgetary performance," S&P analyst Irina Pilman said in a statement.

Ratings reflect the okrug's very high wealth levels, above-average expenditure flexibility, potential proceeds from asset sales and better infrastructure than other regions, the agency said.

These strengths are mitigated by the okrug's economic concentration in the oil industry, limited revenue predictability and flexibility, owing to the control wielded by the central government, and some remaining institutional uncertainty related to the orug's status as part of the Tyumen Oblast (not rated), the agency noted.

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