S&P rates Samara Oblast BB+

Standard & Poor’s said it assigned a BB+ long-term global scale rating and ruAA+ Russia national scale rating to RUB 12 billion seven-year amortizing senior unsecured bond to be issued by Samara Oblast on July 10.

The bond will have 28 fixed-rate coupons and an amortizing repayment schedule.

According to the redemption schedule, 10% of the bond is to be repaid in 2015, 20% in 2016, 20% in 2017, 20% in 2018, 15% in 2019, 10% in 2020 and the remaining 5% in 2021, S&P said.

The ratings reflect Russia’s developing and unbalanced institutional framework, which limits the oblast’s budgetary flexibility, as well as a view of the oblast’s low economic wealth and negative financial management in an international comparison, the agency said.

The ratings are supported by the oblast’s modest debt and low contingent liabilities, S&P said.

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