Credit rating of the Samara region raised to "stable"
17.04.2017 Source: Volga News Author: Alexey Dmitrenko
April 14, 2017 there was an important event for the Samara region - the international rating agency Standard & Poor's raised the outlook for the credit rating of the region from "negative" to "stable."
The rating level of the region, confirmed by the international scale at the level of "BB" and on the national scale at the level of "ruAA", means moderate financial stability and the ability of the subject to service its current liabilities in the short term. "Stable" rating outlook means that by expectation of rating agency Standard & Poor's the Samara region in the coming year will continue to demonstrate good financial and economic performance and take a leading position.
Since 1997 the Samara region cooperates with leading international rating agencies Standard & Poor's and Moody's Investors Service, whose rating reflects the level of financial and economic development of the region and is the most authoritative for investors around the world.
It should be noted that a similar action regards to the Samara region was made shortly before this event by the international rating agency Moody's Investors Service. February 20, 2017, the outlook for the rating of the region was changed from "negative" to "stable", and the rating was affirmed at "Ba3".
The raising of the Samara region's rating outlook reflects positive processes in economy, including financial sector, that have taken place recently, which could allow the region to make a transition to a higher level of creditworthiness and investment attractiveness.
According to analysts of the rating agency Standard & Poor's, the main factors, influenced the increase in the rating outlook, are the improving the quality of revenues and expenses management of the region through new mechanisms of controlling costs, the improving financial performance, and a sound policy for managing the public debt of the Samara region.
Raising of the outlook for the ratings of the Samara region and its debt obligations by international agencies will reduce the cost of borrowing and conduct a more effective debt policy, making it easier for investors the assessment of investment reliability, which will lead to an increase not only in the portfolio investment but also in the direct investment in the economy of the region.
"Raising of the level of the Samara region's credit rating makes more favorable conditions to attracting large-scale investments, creating new jobs, increasing tax revenues and demonstrating that the regional economy is on the rise. In many respects, this is the result of the economic and social policy, pursued in the region, aimed at the effective use of each budget ruble," said Nikolay Merkushkin, the Governor of the Samara Region.