Raising the credit rating of the Samara Region contributes to economic growth
Significant positive dynamics of the economic development of the Samara Region was noted by the Russian rating agency ACRA. On June 11, 2019, the Russian rating agency ACRA published a press release on raising the credit rating of the Samara Region by one notch to the level of AA (RU), Stable, meaning a high level of creditworthiness and financial stability in the region.
A high credit rating allows the Samara Region to strengthen its position in a group of Russian regions that are distinguished by a high degree of investment attractiveness. At present, the rating level obtained by the province is comparable to the indicators of such an economically developed region as the Moscow Region. The dynamics of its growth is unique for the entire history of assigning ACRA ratings - over the past two years, the rating of the Samara Region has been raised by three steps.
The main factors that influenced the rating increase, according to analysts of the rating agency ACRA, are the growing balance of the regional budget due to the positive dynamics of budget indicators and an effective policy for managing the public debt of the Samara Region.
The regional Government has recently managed to achieve an increase in tax revenues to the budget. The share of own revenues of the regional budget, according to experts of ACRA, in 2019 will be 90%. The reduction of the region’s debt obligations is advancing.
As noted by First Vice-Governor - Chairman of the Government of the Samara Region, Viktor Kudryashov, the huge amount of debt load on the regional budget was the main constraint on the development of the region two years ago.
- The region managed to reduce the amount of public debt by almost ten billion rubles, to increase budget revenues. Now the region’s debt is about 38 percent of the budget revenue. This is a normal level, but, nevertheless, we continue to work further on reducing the public debt, - explained Viktor Kudryashov.
The “Stable” forecast obtained by the region assumes with the highest probability that the rating remains unchanged on the horizon of 12–18 months.
Experts have no doubt that the increase in the credit rating will have a positive impact on the investment attractiveness of the region, which will give an additional impetus to the social and economic development of the Samara Region.
The Minister of Economic Development and Investment of the Samara Region, Dmitry Bogdanov, recalled that the region had completely restarted the support system for investors. Now, in the "one window" mode, Investment Promotion Agency of the Samara Region is closely involved in this.
Also, by the end of 2018, the Samara Region ranked first among non-capital regions of Russia in terms of the development of PPP. Dmitry Bogdanov said that from the point of fast-payback cases from this year, the region is moving to the implementation of large-scale infrastructure projects totaling more than 200 billion rubles. In the future, the launch of these projects will seriously affect the effective development of the regional economy.