S&P lifts Bratsk

Standard & Poor's said it raised the long-term issuer credit rating on Bratsk to B+ from B and the Russia national scale rating was raised to ruA+.

The outlook is stable.

The upgrade reflects the city's continued economic and budget revenue growth, and the consequent stabilization of its financial performance.

Ratings are supported by the city's improved revenue and expenditure stability, due to the recent municipal reform, low debt and relatively sophisticated management, S&P said.

Ratings are constrained by remaining uncertainty caused by dependence on federal and regional decisions, which affect salary levels, shift expenditure responsibilities and require co-financing of expenditure programs, the agency said.

The city also remains one of the few donors in the Irkutsk Oblast equalization system, which has many less-wealthy municipalities, resulting in constant pressure to redistribute revenue in favor of weaker municipalities, S&P said.

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