23 May 2011, Monday, 11:38
author: Alfia Sharafutdinova
The credit rate of the capital RB is changed from “Stable” to “Positive” and at the same time the long-term credit rate of the issuer “BB” and the rate by the national scale “ruAA-“ are confirmed. The rate of the expected debt reimbursement after default remained on the level “3”.
“The forecast “Positive” reflects our opinion that the financial and liquidity showings of Ufa will remain rather high in 2011-2013 as well as the expectation of higher volumes on inter-budget transfers from Republic of Bashkortostan and that will allow the city to compensate partially the pressure on the supply, thus preserving low debt load” – this is the substantiation, made by “Standard & Poor’s”.
“In our basic scenario we also expect the capital expenses of Ufa will be co-financed by the federal and the Republican governments in the form of capital transfers. It will help the city to maintain the program of capital investments on the level about 15% of aggregate expenses and the budgeted deficit remains rather moderate, taking the capital expenses into account, on the level of 2-5% of the city aggregate profits in 2011-2013. We expect that in the middle-term perspective the Ufa debt will remain rather low according to international criteria. The city will hardly increase the direct debt volume but further administration of guarantees mainly for support of the municipal investment projects is scheduled” – said on the “Standard & Poor’s” official site – “On May 1, 2011, the city had two billion rubles of free means, which can be used for the debt repayment. In accordance with our basic scenario we expect that the accumulated means can be partially spent in 2011-2012 but this means have to help the city to repay the whole debt in the nearest two years, including the pre-term credit repayment for the sum approximately 250 million rubles in 2012 (the term of full payment is in 2013). Ufa accommodates municipal and private companies with the budget loans and we expect that in the nearest years the city will be able to obtain as minimum as 200 million rubles from the payments on these loans”.