Ukranian News - S&P Affirms Dnipropetrovsk At 'В/uaA-'

Ukranian News - S&P Affirms Dnipropetrovsk At 'В/uaA-':

"Standard & Poor's Ratings Services, an international ratings agency, has affirmed its 'B' long-term issuer credit and 'uaA-' Ukraine national scale ratings on the Ukrainian City of Dnipropetrovsk, the agency has announced in a press release.
The outlook is negative.
The ratings on Dnipropetrovsk reflect Ukraine's "volatile and underfunded" public finance system, resulting in the city's low financial flexibility and predictability, what we regard as "negative" financial management, material contingent liabilities related to municipal utilities, and a poor and concentrated economy. These constraints are mitigated by Dnipropetrovsk's low debt burden, strong financial support from the central government, moderate budgetary performance, and a "neutral" liquidity position. The rating on the city is capped by the sovereign rating on Ukraine.
As Ukrainian News earlier reported, in September 2012 S&P affirmed Dnipropetrovsk at 'B'.
Before, S&P said it regarded inappropriate assigning Ukrainian municipalities ratings higher than the sovereign one.
In mid-May, S&P affirmed Ukraine's long-term and short-term ratings at 'B/B'.
Later, S&P announced possible downward revision of the country's ratings."

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