Moscow’s credit rating demonstrates the stability of the city’s economy

Expert RA JSC confirmed Moscow’s creditworthiness rating at the level of ruAAA. This is the maximum on the national scale for the Russian Federation. The outlook for Moscow is stable.

“Once again Expert RA agency has assigned Moscow the highest credit rating on the national scale. This assessment provides further independent confirmation of the soundness of the city’s financial policies. In the next three years, we forecast a steady growth of the city’s economy and a consistent increase in budget revenues from all major sources. A diversified revenue base, a high level of budgetary autonomy and a low debt load allow Moscow to reliably meet all its obligations, finance city programs without financial risk and attract investments. Provision will be made for the provision of comprehensive social support for city residents, the continuation of large-scale infrastructure projects in the fields of education, healthcare, culture and sports, the modernization of the transport system and the comprehensive development of urban areas,” said Elena Zyabbarova, Minister of the Moscow City Government, Head of the Finance Department.

Indicators of the highest credit rating

The capital’s credit rating was assessed in relation to the following areas: regional economic development, demography and the labor market, the investment climate, and the city’s budget balance and debt load.

The rating agency’s experts emphasized that the capital is a region with a high level of economic development. The gross regional product (GRP) of Moscow accounts for 20 percent of the combined GRPs of all the constituent entities of the Russian Federation. In 2024, it reached 37.7 trillion rubles, 5.5 percent higher than in 2023. GRP growth is continuing this year. In January-August industrial production increased by 4.8 percent, retail trade turnover by 0.5 percent, the volume of paid services provided to the public by 1.8 percent and the volume of construction work by 11.9 percent.

The city’s developed labor market with a low unemployment rate and high investment activity also had a positive impact on the rating. In 2024, the volume of investment in fixed capital in Moscow reached 8.1 trillion rubles, increasing by 4.4 percent compared to 2023. The average ratio of fixed capital investment to total GRP reached 22 percent.

Expert RA JSC noted that the city budget is characterized by balance and autonomy. Moscow’s tax and non-tax revenues of Moscow in 2024 amounted to 98.2 percent of all budget revenues, and by the end of 2025 it is planned that this indicator will increase to 98.7 percent.

The developed economy of the metropolis forms a highly diversified tax base, in which the 10 largest taxpayers account for only 7.7 percent of tax revenues to the capital’s budget. In the face of external shocks and constraints, this acts as an important factor in the sustainability of city finances and has a positive impact on its rating score.

On the debit side of the account, the capital’s budget is characterized by a balanced structure of expenditure. In 2024, its total amount of expenditure reached 5.2 trillion rubles, with social spending accounting for half the total. In addition, Moscow, at its own expense, fully finances capital expenditure on the development and modernization of social, transport and utility infrastructure and the improvement of the quality of the urban environment.

Last year the capital reported a budget deficit of 23 billion rubles, or 0.5 percent of tax and non-tax revenues. The low level of this indicator indicates the highly balanced state of the city’s treasury.

The agency’s experts also noted Moscow’s low debt load. In 2024, the volume of state debt decreased by almost 15 percent, to 167.5 billion rubles. As of January 1, 2025, the debt burden and debt service costs were 3.3 percent and 0.2 percent, respectively. These factors, taken together, had a positive impact on the rating. The capital has sufficient funds to cover possible temporary cash gaps and short-term debt obligations.

Read more about Moscow’s budget policy in the Moscow Department of Finance’s Telegram channel, Open Moscow Budget, and on the Open Moscow Budget website.