ACRA RAISED THE CREDIT RATING OF MORDOVIA
The increase in the credit rating of the Republic of Mordovia is due to a significant reduction in the debt burden by the end of 2022 due to the region receiving extraordinary support from the higher budget, as well as the absence of the need to attract borrowed funds to finance capital expenditures.
The level of the credit rating of the republic takes into account the moderate indicators of the debt burden and the budget profile, as well as the amount of accumulated liquidity sufficient to finance the projected budget deficit. The rating is constrained by a moderately low economic profile and a low share of own budget revenues, along with a high share of capital transfers in the capital expenditures of the region.
As of January 1, 2023, the republic's debt amounted to 33.8 billion rubles, which is 32% less than in 2021. The reduction in the amount of debt was made possible due to the receipt by the region of subsidies for 16.0 billion rubles in order to support measures to ensure budget balance. These funds made it possible to repay about a third of budget loans and half of bank debt ahead of schedule. The debt portfolio at the beginning of 2023 was represented by budget and bank loans in the ratio of 91 and 9%, respectively.
At the end of 2022, a debt repayment schedule was formed that does not involve significant peak payments, while the vast majority of debt obligations are repayable after 2025, taking into account the non-commercial nature of most of these obligations. This year, Mordovia will have to repay or refinance 10% of the debt (almost entirely bank loans), and in 2024 - less than 0.5%.
The credit rating was assigned on the basis of data provided by the Republic of Mordovia, information from open sources (the Ministry of Finance of Russia, Rosstat, the Federal Tax Service).