28 June 2013, Friday, 15:14

Moody's has raised Bashkiria rating to «Ваа3»

author: Elvira Latypova

Moody's international rating agency  has raised the Bashkortostan rating as the emitter of obligations in foreign and national currency from «Ва1» to «Ваа3». The forecast is changed from "positive" to "stable", "Interfax" informs referring to the agency communique.

Improvement of ratings is explained by «invariably strong liquidity profile and low level of debts of the republic».

It should be mentioned that on May 28, Moody’s Investors Service analysts met with the President of Bashkortostan Rustem Khamitov in Ufa. They were interested in priorities of the region development in intermediate term prospect taking into account a number of objective constraining factors. Revision of the rating towards its increase became a result of analytical work.

Experts underline traditionally circumspect approach of the Government RB to the budget management and the fact that the liquidity profile of the republic is the strongest among other subnational formations in Russia – about 28 percent from operational revenues in 2012.

Very low level of debt – about 12 percent of operational revenues in 2012 is marked also. The next three years this indicator, under Moody’s forecasts, will grow no more than by 20 percent. Hence, Bashkortostan will be capable to pay debts without attraction of new loans.

It should be added that in May the rating estimate of the republic was raised by another international agency — Standard and Poor's. The credit rating was changed from «BB +» to "BBB-". The forecast is revised from "positive" to "stable".