The Analytical Credit Rating Agency (ACRA) has awarded Moscow the highest credit rating, AAA (RU), with a “stable” outlook. The rating is based on the city’s high level of economic development, the self-sufficiency and structural balance of its budget, the considerable surplus of its operating balance, as well as its significant liquidity and minimal debt burden.
According to the agency’s analysts, the average per capita income in Moscow is almost twice as high as in other regions of the country. Unemployment remains low at about one third of the national average, as measured using the methods of the International Labour Organisation. The large surplus of the operating balance allows the city to finance major spending and pay off debts without refinancing.
Over the last 3 years, Moscow’s debt has decreased by 65.5 percent. The ACRA estimates that in 2017-2018, the city will not need to raise debt capital.
“The high assessment of the Moscow economy and the favourable outlook are due to the city’s well-balanced yet active economic policy, which combines cost optimisation and a search for new sources of revenue. This approach has proven effective, and we will continue using it in the future,” said Natalya Sergunina, Deputy Mayor for Economic Policy and Land and Property Relations.
Vladimir Yefimov, Moscow Government Minister and Head of the Department of Economic Policy and Development, stressed that due to its balanced economic policy Moscow has opportunities to pursue major infrastructure programmes, including the construction of roads and the metro and the improvement of the city territory.
“The city’s economy allows us to accumulate free funds to finance urban development projects, which are turning Moscow into one of the most comfortable megacities for living,” the minister added. The favourable conditions attract large private investments to the capital.