S&P affirms Leningrad Oblast

Standard & Poor's said it affirmed its foreign currency issuer credit rating on Leningrad Oblast at B+ and national-scale rating at ruA+ based on expectations of an improvement in the oblast's budgetary performance.

The outlook is positive.

The agency said that the ratings on the oblast, located in the northwest of The Russian Federation (foreign currency BBB+/stable/A-2, local currency A-/stable/A-2), are constrained by the Leningrad Oblast's low revenue and expenditure flexibility, financial risk linked to growing debt guarantees.

Moreover, evolving inter-governmental relations and the need to upgrade and build new transport and housing infrastructure are also rating constraints, S&P said, noting that the ratings are supported, however, by the oblast's improving economy and its consistent fiscal policies, resulting in a moderate debt burden.

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