УExpert RAФ assigned ruBBB+ credit rating to Krasnodar

August 13, 2019 / Announcements and results of actions

"Expert RA" rating agency assigned a credit rating at the level of ruBBB+ to Krasnodar. As reported by the agency, a stable forecast was established in terms of the rating.

"ruBBB" is a moderate level of credit standing, financial viability and financial sustainability as compared to other objects of rating in the Russian Federation. It has a higher susceptibility to impact of negative changes in economic environment than objects of rating in the category ruA. A credit rating is ax long-term one; its revision is expected to take place not later than 182 days from the date of publication.    

According to the data of analysts, a low share of tax and non-tax revenues (NTR) within the structure of municipal exchequer revenues Ц over the year 2018 their share made 48.1% - imposes pressure on the rating score.  

Conversely, the budgetary assignments on own revenue were fulfilled for 102.8%, yielding 15.4 billion rubles.

"Following the implementation of measures aimed at enhancing fiscal sustainability the budget of the municipality over the reporting period was close to a deficit-free one and made only -0.4% NTR the fact that exerted a positive influence on the rating", - noted analysts.

In 2019 the agency expects the flow of tax revenues in the amount of 17.2 billion rubles, the increase of which will be ensured through the inflow of personal income tax from sales of shares. According to the experts, this would enable to preserve a low level of fiscal deficit by the end of the current year.

Based upon the materials of RBC-Kuban