On the assignment of a credit rating to Rostov-on-Don city

On the assignment of a credit rating to Rostov-on-Don city

Based on the rating score, the RAEX (Expert RA) rating agency has raised the creditworthiness rating of Rostov-on-Don city (long-term creditworthiness) under the national scale to the level of ruА+.

The rating has set a stable forecast. Previously, the city had a rating of ruA with a stable outlook.

Key positive factors affecting the credit rating:

  • a low level of debt in terms of tax and non-tax revenues (the ratio of debt as at January 1, 2017 to tax and non-tax revenues for 2016 has amounted to 13.4%);
  • a comfortable debt structure for creditors (all debt obligations are provided by the Ministry of Finance, which is due for repayment in the period of 2025-2034. Currently, there are costs only for servicing the debt);
  • a low share of debt service costs (in 2016, the ratio of debt service costs to tax and non-tax revenues has been 0.01%);
  • dimensionally high characteristics of the city (the volume of shipped goods and services for 2016 has amounted to 326.9 billion rubles, the volume of shipped goods and services per capita by the results of 2016 has amounted to 290.5 thousand rubles);
  • a high share of capital construction costs (according to the results of 2016 15.4% of expenditures are expenses for capital construction);
  • a moderately high level of budget surplus (according to the results of 2016, the ratio of surplus to tax and non-tax revenues has been 6.6%);
  • high discipline of budget execution (in 2016, the budget of the city for the receipt of tax and non-tax revenues has been exceeded. The ratio of actual execution to the planned indicators is 105.2%);
  • a high diversification of tax revenues by taxpayers (12.7 percent accounts for the top 10 taxpayers).

Information about ratings of past years is presented on the page "Rostov in the Ratings".