"Fitch Ratings has affirmed the City of Moscow's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB-' with Stable Outlooks, Short-Term Foreign Currency IDR at 'F3' and National Long-Term rating at 'AAA(rus)' with a Stable Outlook," the release stated.
The ratings firm cited Moscow’s sound budgetary performance, robust wealth and economic sectors, high capital expenditure flexibility and strong debt ratios as ratings drivers.
The city can absorb revenue shocks and has a low direct risk by both national and international standards, Fitch explained.
Additionally, Moscow is likely to maintain a strong operating margin of 20-22 percent in 2016-2018, in line with the historical average.
The rating reflects Fitch’s unchanged view of Moscow’s strong budgetary performance and low medium-term risk, but is constrained by Russia’s BBB-/Stable ratings.