Standard & Poor's: Surgut’s stagnating economy affects ratings
12 October 2010 (16:04)
UrBC, Yekaterinburg, October 11, 2010. The international rating agency promoted the long-term credit rating and the national scale rating of Surgut, a Russian city, from ВВ-/ruAA- to ВВ/ruAA, with Stable rating outlook.
‘The rating promotion results from the fact that we now give more favorable estimates to the city’s liquidity status, which, in its turn, has to do with our adopting a new methodology on rating the regional and municipal authorities,’ says Standard & Poor's credit analyst Karen Vartapetov.
Standard & Poor's reports the rating is still badly affected by Surgut’s stagnating economy, poor financial flexibility, and low predictability, given especially the upcoming mayor elections and the fact that Khanty-Mansiysk Autonomous Region is still only shaping its financial policy regarding Surgut. On top of these negative factors, both Khanty-Mansiysk Autonomous Region on the whole and Surgut in particular depend heavily on the oil industry and a major O&G company OAO Surgutneftegaz.
‘The rating promotion results from the fact that we now give more favorable estimates to the city’s liquidity status, which, in its turn, has to do with our adopting a new methodology on rating the regional and municipal authorities,’ says Standard & Poor's credit analyst Karen Vartapetov.
Standard & Poor's reports the rating is still badly affected by Surgut’s stagnating economy, poor financial flexibility, and low predictability, given especially the upcoming mayor elections and the fact that Khanty-Mansiysk Autonomous Region is still only shaping its financial policy regarding Surgut. On top of these negative factors, both Khanty-Mansiysk Autonomous Region on the whole and Surgut in particular depend heavily on the oil industry and a major O&G company OAO Surgutneftegaz.
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