Moody's rates Komi bond Ba2

Moody's Investors Service said it assigned a Ba2 global scale local-currency rating and an Aa2.ru national scale rating to the Republic of Komi's RUB 2.1 billion bond issue due 2014.

The proceeds will be used to fund Komi's expected financing needs in 2011 and to strengthen its liquidity position, Moody's said.

The ratings are based on Komi's low debt and interest costs, conservative budget management and resilient local economy, which has good prospects for further development, Moody's said.

The ratings also are supported by the region's fairly good liquidity position compared with that of its Russian peers, the agency said.

These factors are partially offset by the region's rather weak operating balances and considerable exposure to taxpayers from the oil and gas industry, Moody's said.

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