S&P IMPROVES ST. PETE'S RATING FORECAST TO JOIN BB

MOSCOW, FEBRUARY 2, RIA NOVOSTI - The transnational rating agency Standard & Poor, or S&P, has upgraded St. Petersburg from "steady" to "positive" in its forecast, thus to confirm its long-term BB credit rating, as the city economy and debt structure are improving, the agency says in a press release.

The changed rating will increase city solvency unless the new municipal administration gives up succession of financial, economic and social policies, reassures the S&P.

On the other hand, harassing St. Petersburg reputation are changes of administration, and revenues which are not flexible and predictable enough, warns the agency.

"Positive forecasts reflect municipal economic improvement, increasing revenues and moderate debts-all to make the city more solvent," the release quotes Elena Okorochenko, S&P credit analyst.

"If the new municipal administration respects succession of financial, economic and social policies, and further redistribution of fiscal revenues and liabilities is neutral or positive, the city may improve its rating," expects Miss Okorochenko.