Moscow based Analytical Credit Rating Agency (ACRA) has assigned AA(RU) rating to the Moscow Region, having noted that the region is home to 5% of the national population and contributes 5% to the national GDP.
The Agency took into account such factors as region’s high economic diversification and advantageous location, low rate of unemployment, relatively high per capita income (30% higher than the national average), large-scale capital investments, budget deficit which may be covered by the region’s own reserves, well-balanced debt structure (in 2018–2019 though, the region’s total debt may exceed 300% of its operating balance which is a substantial risk), moderate volume of liabilities incurred by public sector enterprises, excessive budget liquidity.
ACRA assumes that the rating will most likely stay unchanged within the 12 to 18 months horizon.