ACRE has assigned Moscow a rating of «AAA(EN)», Outlook stable

© RIA Novosti / Kirill to Kallinikova in fotomasterskaya embankment in Moscow. Archival photoACRE has assigned Moscow a rating of «AAA(EN)», Outlook stable© RIA Novosti / Kirill to Kallinikova the image Bank

Analytical credit rating Agency (ACRA) has awarded Moscow’s highest credit rating «AAA(RU)» with a stable Outlook, the Agency said.

«ACRE gave Moscow credit rating of «AAA(EN)», Outlook stable. The credit rating of Moscow due to the high level of development of the regional economy, a substantial surplus of operating balance, a high level of self-sufficiency and the structural balancing of the budget, significant liquidity budget and a negligible debt load», — stated in the message.

According to the Agency, Moscow ranks first in Russia in terms of gross regional product (GRP). In 2015, GRP amounted to 13.5 trillion rubles (more than 20.8% of the total GRP of Russian regions).

Formally the city’s economy is characterised by a high sectoral diversification. About 32% of GRP is formed in the sector «trade», and 23% in the segment of «operations with real estate, rent and granting of services». However, according to the Agency, a real diversification by industry above: many large companies in different sectors have a holding structure, and the main activities of the parent companies indicated «wholesale trade» or «all other services».

The budget of the city is characterized by high self-sufficiency (own incomes — on average 98%). The amount of required expenditure is in the order of 62%, and operating balance of the city — 33% of regular income. It is reported that in 2014 the volume of debt has decreased 2.9 times (117,3 billion). Estimated ACRES in 2017-2018, the city will not feel the need to attract debt capital.

Clarifies that the rating could be revised in a negative direction in the case of significant increase in debt load, reduce the operating surplus of the balance or change the system of interbudgetary relations in Russia.