| Athough there is still confusion about which Russian entities will be allowed to make international offerings this year, some bankers have placed their bets on entities from Moscow. "It's not a hard call," says one. "All you have to do is spend time in Moscow and then go out to the regions. You will quickly understand the difference." The Russian economy as a whole has failed to turn around and register growth but Moscow has been booming. The city accounts for 23% of the Rusian Federation's income the resource-rich Tyumenskaya Oblast in western Siberia is a distant second with 4.6%. The sudden appearance in Moscow of statues of Peter the Great and rapidly constructed gold-domed cathedrals may raise concerns over where all the wealth is going, but the economic fundamentals look good. In February, rating agencies gave Moscow city a sovereign ceiling (Ba2 from Moody's; BB minus from Standard and Poor's) with suggestions Moscow would have come out even better were the rating agencies not by policy subject to sovereign ceilings. Bankers expect the city's debut Eurobond offering to be led by Credit Suisse First Boston and Nomura in the market soon. |