S&P Global Ratings International Agency Upgrades Samara Region Credit Rating
On Friday, August 9, one of the leading international rating agencies, Standard & Poor’s Global Ratings, published the results of the credit rating of Russian regions. According to its results, the Samara Region rose from the level of “BB” to “BB +” and received a rating of “Stable”.
The agency assigns the level of “BB +” to entities with optimal indicators of a balanced budget with a moderate level of debt burden. This indicator reflects the positive economic situation in the province and contributes to giving an additional impetus to increasing the investment attractiveness of the region.
According to representatives of the rating agency, the Samara Region managed to rise in the rating largely due to the balanced approach of the region’s leadership and Governor Dmitry Azarov personally to the implementation of expenditures and an effective government debt management policy. The growth of tax revenues and the improvement of liquidity indicators also played a significant role. “We note an improvement in the practice of managing the region’s debt obligations in recent years: the repayment schedule has lengthened, management regularly conducts operations in the capital markets, including issues on the Russian bond market and has successful experience in attracting financing in adverse market conditions,” analysts say agencies.
Currently, in terms of credit rating according to the scales of international rating agencies S&P and Moody’s, the Samara Region is in the lead, second only to several regions: Moscow, St. Petersburg, the Moscow Region, the Yamalo-Nenets and Khanty-Mansi Autonomous Districts, the Republics of Bashkortostan and Tatarstan.
Recall that in February of this year, the Moody’s Investors Service Ltd. International Rating Agency also increased the credit rating of the Samara Region from Ba3 to Ba2 with a stable outlook. Experts noted that the increase in the rating level reflects the positive processes in the economic and financial sphere of the Samara region that have occurred recently.
Raising credit ratings is a long-awaited event for the Samara Region - for more than 10 years, international rating agencies S&P and Moody’s have not raised the province’s credit rating. Over the past two years, rating agencies have revised only forecasts of changes in the rating of the Samara Region and were in no hurry to make a decision. It was very important for reputable rating agencies S&P and Moody’s all over the world to see the steady dynamics of improving the indicators of financial and economic development of the region in recent years and to verify the effectiveness of the policy of the regional leadership. The rating upgrade is a visible confirmation of systematic work in this direction.
Source: Official website of the Government of the Samara Region