Moody's rates Samara bonds Aa1.ru

Moody's Interfax Rating Agency said it assigned Oblast of Samara an Aa1.ru national scale rating to its RUB 5 billion senior unsecured debt with a maturity of five years and a fixed coupon rate.

The issue rating is similar to that of the region.

Moody's Interfax said the Aa1.ru national scale rating is supported by the region's strong and prudent budget management, low debt burden and high liquidity at the end of 2006. The rating also considers the increasing importance of the local economy's performance and tax revenue.

The agency said the region's economic growth is expected to continue at 5% to 7% annually, although the Oblast's economy is still exposed to the risk of deteriorating financials of AvtoVAZ, the locally based major Russian car manufacturer, and Samaraneftegaz, an oil producer.

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