Moody's Investors Service has changed to positive from stable the outlooks on the ratings of 11 regional and local governments in Russia, including Krasnodar.
Moody's has also changed outlooks to stable from negative for four regional and local governments, including Krasnodar Krai, and affirmed their ratings.
According to Moody's, Krasnodar benefited from a significant increase in transfers from Krasnodar Krai, despite the latter's own consolidation measures. Such support, together with stronger own-source revenues, enabled the city to maintain performance at around historic levels and avoided growth in its debt burden and pressure on liquidity. The stable outlook reflects the fact that the anticipated decrease in systemic risk will be offset by continued modest fiscal performance.
