S&P confirms rating of Ufa at “BB-“ level and can raise it in the course of this year
The long-term credit rating of Ufa is confirmed at the level of “BB-“ and by the national scale – at the level of “ruAA-“ with “positive forecasts”, said in the release of “Standard & Poor’s”.
“We confirm ratings “BB-/ruAA-“, given to top priority unsecured debt obligations of the city and the rating of expected level of debt repayment after default (“3”) on these obligations demonstrates our expectations of substantial (50-70%) debt repayment in case of default” – analysts of the agency say.
In their opinion in the middle-term perspective Ufa will preserve rather moderate financial showings and neutral position of liquidity in spite of their certain weakening, connected with the increase of expenses during the pre-election period in 2011.
“We can revise the forecast to “Stable’ during the nearest 12 months, if financial showings of the city remain moderate, if the current budget surplus doesn’t exceed 5% of revenues and position of liquidity still remains neutral in accordance with our basic scenario” – S&P reports.