S&P ups Bashkortostan view to positive

Standard & Poor's said it revised its outlook on the Russian Republic of Bashkortostan to positive from stable, reflecting revenue growth and the reduction of contingent liabilities.

At the same time, the BB- long-term issuer credit rating was affirmed.

The rating on Bashkortostan, situated in The Russian Federation (foreign currency BBB-/stable/A-3; local currency BBB/stable/A-3), is constrained by low budget predictability and flexibility, a concentration of major taxpayers in the oil extraction and processing industries, a high, although declining, level of contingent liabilities and dependence on federal subsidies, S&P said.

These factors are mitigated by the republic's continuing strong financial position, including a low debt burden, high liquidity and strong budgetary performance, S&P said.

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