Moody`s Investors Service Agency Raises Komi's Credit Rating

The Moody`s Investors Service international agency has raised the credit rating of the Republic of Komi by one point to B1, outlook stable. Following the upping of the rating of Russia, the ratings of 8 other regions of Russia have also been raised. Previously the credit rating of the Republic of Komi was raised exactly a year ago, in December 2001.

According to the Komiinform agency, the authorities of the republic believe that the raising of its credit rating will make its securities more attractive and bring down the cost of loans the Republic of Komi may get in Russia or abroad. At this time, Komi's credit rating is just two points below that of Russia at large and such federal giants as Moscow and St. Petersburg. The rating of Komi, while being within the same category, is also one point below that of the Samara Region, Bashkiria, and Tatarstan. However, the republic is ahead of the Yamal-Nenetsky Autonomous District and Moskow and Nizhny Novgorod Regions.

Moody`s Investors Service explains the raising of Komi's rating by the republic's upward movement, both politically and economically, and positive developments in its financial sphere. The regions whose credit ratings had gone up showed steady economic progress and the increase of tax revenues, which, however, after changes in tax legislation took effect have been flowing more towards the federal treasury. In the meantime, the leaders of these regions successfully cope with their difficulties, having enhanced their management systems and budgetary policies. The Moody's say that the present credit ratings take into account the difficulties the regions have to cope with and pressure on the part of the federal government.