Moody's may increase ratings of the capital of Kazakhstan Astana and Atyrau city

/REUTERS, London, September 20, 02/ - International rating agency Moody's informed on Friday that it can increase ratings of two large cities in Kazakhstan - capital Astana and and the center of oil industry Atyrau - from "Ba3" and "B1", correspondingly. The agency informed that possibility of reexamining of these ratings became real after rating of Kazakhstan on borrowings in foreign currency had been increased to "Baa3" с "Ba2". Moody's notes that the country's Government makes has the greatest influence upon the policy of authorities, including financial sphere. Below is the text of Moody's information in English: "LONDON, Sept 20 - Moody's today announced it is placing the Ba3 issuer rating of the City of Astana and the B1 issuer rating of Atyrau Oblast in Kazakhstan under review for possible upgrade. The review follows the announcement yesterday that Moody's had upgraded the foreign currency rating of Kazakhstan to Baa3 from Ba2. Central government exerts considerable influence over the policies and finances of Kazakh local governments. Consequently, improvements in the central government's own finances are overall positive for local governments. Nevertheless, intergovernmental relations still lack stability and local governments' budgets are subject to annual negotiations on withdrawals and transfers. Therefore the review will focus on the extent to which central government intends to stabilise and underpin the local government system". [2002-09-20]