S&P: Leningrad to negative

Standard & Poor’s said it revised the outlook on the Russian Leningrad oblast to negative from stable.

The agency also said it affirmed the BB+ long-term issuer credit rating and ruAA+ Russia national scale rating on the region.

The downgrade on Leningrad follows the recent downgrade of the long-term foreign-currency sovereign rating on Russia to BB+ from BBB-, S&P said.

Leningrad’s stand-alone credit profile is assessed at BB+.

The ratings reflect Russia’s volatile and unbalanced institutional framework, which translates into a weak budgetary flexibility for Russian regions, including Leningrad, S&P said.

The ratings also consider the oblast’s weak economy and weak financial management in an international context, the agency said.

The ratings are supported by the oblast’s average budgetary performance, adequate liquidity, low debt burden and low contingent liabilities, S&P added.

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