Standard & Poor's: Yamal’s ratings halted by Gazprom dependence

Standard & Poor's promoted Yamalo-Nenetsky Autonomous District’s long-term credit rating from BBB- to BBB and confirmed the region’s national scale rating at ruAAA, with Stable Rating Outlook.

The agency reports an increase in the rating has to do with the measures the district’s administration has been taking to institutionalize its reserve fund that is crucial to the elimination of risks generated by the budget revenues’ great volatility.

The region’s great dependence on its major taxpayer OAO Gazprom (ВВВ/Stable/А-2), as well as only a limited opportunity for profit prediction and the uncertainty related to the district’s institutional status all keep the ratings from going further up,’ the company explains.