S&P boosts Balashikha Rayon

Standard & Poor's said it raised its long-term issuer credit and Russia national-scale ratings on Balashikha Rayon to B and ruA-, respectively, from B- and ruBBB+.

The outlook is stable.

The rayon is located in the Moscow Oblast (BB/positive, Russia national-scale ruAA), the agency noted, adding that the upgrade follows good growth in the rayon's economy, boosted by Balashikha's strategic location near the city of Moscow (foreign currency BBB+/stable) and the related growth in budget revenues.

The ratings continue to reflect, however, the rayon's high dependence on decisions made by and transfers from the Moscow Oblast and the consequent continuing high exposure to short-term interbudgetary debt, S&P said, adding that these constraints are mitigated by the decreasing risks related to ongoing municipal reform, as recent developments have confirmed that the rayon will retain its status and revenue base.

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