S&P boosts Klin Rayon

Standard & Poor's said it raised its long-term issuer credit and Russia national-scale ratings on Klin Rayon to CCC-/ruCCC from CC/ruCC.

The ratings were kept on Creditwatch, where they were placed on Sept. 26, but the agency said it changed the implications to developing from negative.

According to S&P, the upgrade follows the rayon's repayment on Nov. 14, of its RUR 300 million bond, which the agency did not rate.

This payment was made possible by an exceptional transfer from the MoscowOblast (B-/watch negative), as the rayon itself did not have enough liquidity to meet the obligation, the agency said.

Since the repayment of this bond, Klin Rayon's short-term refinancing risks have been significantly reduced, although they remain important, with a bank loan and interbudgetary loans due by the year-end, the agency noted.

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