S&P rates Krasnodar Krai B+, ruA

Standard & Poor's said it assigned its B+ long-term issuer credit rating to the Russian region of Krasnodar Krai. The outlook is stable. S&P also assigned its ruA Russia national scale rating to the Krai.

"The ratings on Krasnodar are constrained by its high dependency on federal subsidies, its relatively low wealth levels, and its low financial flexibility, caused by the Krai's lack of control over its revenues," said S&P credit analyst Valentin Bogorov. "The ratings are supported, however, by its low debt burden, the pro-business style of its management and its well-diversified economy, which has strong potential for sustainable growth."

S&P said it expects that the Krai's adequate financial performance and economic growth will continue to compensate for its significant needs for infrastructure upgrades.

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