Fitch Ratings has affirmed credit rating of Bashkiria at 'BBB'
The international rating agency Fitch Ratings has affirmed the long-term credit rating of the Republic of Bashkortostan at BBB, with a stable outlook. Thus, the region has maintained the highest possible rating level for Russian regions since 2020.
According to the Fitch Ratings methodology for assigning credit ratings to regions, the maximum possible credit rating for Russian regions cannot be higher than the sovereign rating of the Russian Federation, which is at the 'BBB' level with a stable outlook. In 2019, Bashkiria had a BBB rating with a positive outlook.
Agency analysts note that the republic has good resistance to negative shocks (the coronavirus pandemic and the fall in oil prices) and pursues a balanced debt policy.
According to Fitch experts, despite the consequences of the coronavirus year and the limited ability to generate additional revenues, the budget of the Republic of Bashkortostan remains stable, as well as flexibility in cost management: for example, capital expenditures can be postponed or canceled.
Fitch experts predict a recovery in Bashkortostan's financial performance and expect the republic's creditworthiness to remain strong over the planned rating horizon of 2021-2025.