Fitch rates Sakha bonds A+(rus)

Fitch Ratings said it assigned an A+(rus) national long-term rating to the Republic of Sakha's (Yakutia) RUB 2.5 billion three-year domestic bonds. The republic's other ratings are long-term foreign- and local-currency BB-, short-term foreign-currency B and national long-term A+(rus).

The outlook is stable.

The proceeds will be used for capital expenditures and to refinance existing debt.

The agency said it believes the bond issue will improve Sakha's overall debt structure by extending the maturity of issued bonds, while the debt burden will remain manageable.

The ratings reflect a strong local economy, the republic's sustainable budget performance, its successful efforts in improving debt structure and the increasing efficiency of its broad public sector management, Fitch said.

Sakha's ratings also take into account the high dependence of the republic's economy and budgetary performance on extractive industries with a single largest taxpayer, the Alrosa diamond mining company, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.