S&P downgraded the rating of Bashkiria to 'BB +'
UFA, 30 January 2015. /Bashinform News Agency, Elvira Latypova/.
Standard & Poor's International Rating Agency downgraded the rating of Bashkortostan from "BBB-" investment to speculative "BB +", outlook "negative". Similar rating actions were taken with respect to the Khanty-Mansi, Yamal-Nenets Autonomous Districts and Surgut. This was reported in the press release of the agency.
Assessments of the creditworthiness of the regions were revised following the downgrade in the sovereign rating of the Russian Federation from "BBB-" to "BB +" on January 26. According to the methodology of the agency, the ratings of the subjects cannot be higher than the rating of the state.
Previously, Moody's Agency lowered the Bashkortostan rating by one notch — from "Baa3" to "Ba1", "negative" outlook. Moody's actions were motivated by the deterioration of the lending capacity of the Russian Federation and the downgrading in the sovereign rating of Russian bonds from "Baa2" to "Baa3".
The credit rating is an independent assessment of the creditworthiness of the issuer, based on which market participants can make informed financial decisions.