Standard & Poor’s affirms Sverdlovsk Region’s rating

17 December 2009 (13:39)

The rating agency affirmed Sverdlovsk Region’s long-term credit rating at BB, with Stable Rating Outlook, the spokesperson for Sverdlovsk Region Ministry for Economics and Labor reports.

Standard & Poor’s said the regional ratings can’t grow further because of the deeply felt economic recession which, in combination with limited flexibility and predictability of the budget indicators, leads to a currently weakened regional budget balance. What is more, the metallurgical and pipe-manufacturing enterprises comprise the lion’s share of the regional economy, which makes Sverdlovsk Region dependent on the volatile global raw material prices. On the other hand, the region’s paying capacity is backed up by the conservative debt management policy, financial aid from the federal budget, plentiful industrial fund reserves, and above-average prosperity indicators.

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