Ufa credit rating was changed from "negative" to "stable"
UFA, 15 September 2015. /Bashinform News Agency, Rozaliya Valeeva/.
The credit rating of Ufa was changed from "negative" to "stable." The International Rating Agency Standard & Poor's basing on the results of studies conducted in August 2015, has upgraded the outlook of the city from "negative" to "stable" with the confirmation of credit ratings at "BB-" on the international scale and «ruAA-» on the national scale due to the improved financial performance. It is reported by the press service of the city administration.
The positive impact on the rating of Ufa was made by low level of direct debt and contingent liabilities of the city. The Agency believes that in the 2015 — 2017 the financial performance of Ufa will gradually improve, the direct debt will increase only gradually, and the full debt, taking into account the contingent liabilities will remain low in the international context.
The affirmation of rating is conditioned by the opinion of experts that in the medium term Ufa will likely maintain the coverage ratio of debt servicing and repayment at over 80%, and the debt burden will be low for 12-24 months.
According to the agency, over the next 12 months, the rating could be upgraded if in accordance with a positive scenario, additional budget revenues of the city and a balanced approach to spending will determine the current surplus and the coverage ratio of debt servicing and repayment will exceed 120%.
During 2014-2015, among the regions and municipalities of Russia Ufa was the only city which outlook was upgraded by the Standard & Poor's.