Moody's cuts Vologda

Moody's Investors Service said it downgraded the foreign- and local-currency issuer ratings of the Vologda Oblast to Ba2 from Ba1, along with its national scale rating to Aa2.ru from Aa1.ru.

The outlook was changed to stable from negative.

Moody's also said it changed the outlook to stable from negative for the ratings assigned to Nizhniy Novgorod Oblast (Ba2), Belgorod Oblast (Ba1) and Tatarstan Republic (Ba1).

Moody's said it affirmed the foreign- and local-currency issuer ratings of the Saratov Oblast (Ba2), along with its long-term national scale rating at Aa2.ru. Its outlook remains negative.

The agency also said it affirmed the long-term national scale rating of Belgorod at Aa1.ru and Nizhniy Novgorod Oblast at Aa2.ru.

The downgrade of the Vologda reflects rapid growth in its market borrowing in 2009 to 2010 and an expected further increase in its debt burden going forward, Moody's said.

Notwithstanding the post-recessionary recovery in the regional economy and some resumption in tax revenue, the region has not been able to adjust its spending in order to avoid substantial operating and financing deficits, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.