Moody's rates Samara bond Aa1.ru

Moody's Investors Service said it assigned an Aa1.ru national scale rating to the RUR8.3 billion bond issued by the oblast of Samara. The bond is a senior unsecured amortized debt with a maturity of five and a half years and a fixed coupon rate.

Moody's noted that Samara's Aa1.ru national short-term rating is supported by the region's good budgetary performance, prudent budget management and high liquidity at the end of 2007.

The ratings also take into account the limited flexibility of budget tax revenue and expenditure, the agency said, as well as significant need for funding of infrastructure, capable of pushing debt up in the long term.

The oblast's debt burden, including the new bond issue, will remain moderate, the agency said.

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