S&P gives Balashikha bond B, ruA

Standard & Poor's said it has assigned its B long-term debt rating and ruA Russia national-scale rating to the proposed RUR 400 million domestic senior unsecured bond issued on Dec. 28 by Balashikha City District (B/positive, Russia national-scale ruA).

The agency noted that the bond, maturing in 2010, will carry a fixed 10% coupon with six semiannual payments.

"Balashikha will use the bond proceeds to refinance existing debt and fund capital expenditures," said S&P credit analyst Boris Kopeykin.

The ratings on the bond are the same as those on the city district, a local government located in Russia's Moscow Oblast (BB/positive, Russia national-scale ruAA), the agency said, adding that the ratings on Balashikha reflect its high dependence on decisions made by the oblast and The Russian Federation (foreign currency BBB+/stable/A-2, local currency A-/stable/A-2, Russia national-scale ruAAA).

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