In December 2014 rating agency Expert RA confirmed creditworthiness of Krasnodar at the level А+ “Very high level of creditworthiness”. The outlook for rating is “stable”.
— The Krasnodar economy is highly diversified. As according to the results of 2013, key sector of the economy — trade takes 42% in the whole structure of locally produced and shipped goods, executed works or rendered services. The local budget’s independence from individual enterprises positively impacts on the rating evaluation, — Expert RA corporate ratings director Pavel Mitrofanov commented.
Making a ranking the agency used reviews of budget execution for recent three years, official statistics of public authorities as well as data published in mass media. Logical framework of a method used by Expert RA to rate creditworthiness of municipal formations includes an analysis of three blocks: socioeconomic, financial and political risks.
When ranking specialists have remarked such positive factors as low ratio of municipal debt to the value of regional property and low share of debt expense in the whole structure of budgetary expenses (in 2013 share of debt expense is only 2% in the whole structure of municipal expenses) as well as high volumes of the city economy (volume of locally produced and shipped goods, executed works or rendered services amounted to 981,6 thousand roubles per capita following the results of 2013).
There are also such aspects as supportable level of debt load, high dimensional characteristics of the city economy, substantial volume of taxes raised per capita in Krasnodar which affect favorably. Besides of that well balance of economic branches of Krasnodar is emphasized.
High level of investment climate of the Region (as of the end of 2013 Krasnodar Region investment climate rating from Expert RA (RAEX) – 1A high potential – minimum risk), low exchange risks and medium high level of diversification of debt obligations also positively influence on the rating.
It is estimated that in 2014 volume of produced goods and rendered services of Krasnodar will reach 982 billion roubles.
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