Sound budgetary performance. Very low debt burden. Positive liquidity position. Economic and tax-base concentration. Limited budgetary flexibility owing to a developing and unbalanced institutional framework. Low financial predictability given volatile revenues and lack of reliable medium-term financial planning in an international context. The ratings on Chelyabinsk Oblast, an industrial region in Russia's Urals Federal District, reflect our view of its low budgetary flexibility and predictability under Russia's developing and unbalanced system of interbudgetary relations. Economic concentration on metallurgy and exposure to a single taxpayer, which leads to revenue volatility, and lack of reliable medium-term financial and capital planning also constrain the ratings. The oblast's sound budgetary performance, very low debt burden, and a positive liquidity position support the ratings. Chelyabinsk...
Companies mentioned in this report are: Chelyabinsk Oblast,Lipetsk Oblast
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis