S&P rates Sakha ruA-

Standard & Poor's said it assigned its ruA- Russia national scale rating to the Republic of Sakha (Yakutia), located in the far east of The Russian Federation (foreign currency BB+/stable/B; local currency BBB-/stable/A-3; Russia national scale ruAA+).

"The rating on Yakutia is constrained by its remote location, its severe weather conditions, and the concentration of its tax base," said S&P credit analyst Felix Ejgel.

These constraints hinder Sakha's development, create contingent liabilities, and lower the predictability and stability of its budget. Furthermore, they lead to deteriorating financial performance and low liquidity.

"These weaknesses are, however, partly mitigated by Sakha's moderate debt, smooth repayment schedule, relatively high per capita revenues, and improving financial management," Ejgel added.

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