Standard & Poor's Agency confirmed the rating of Bashkortostan as «BBB-» with a "stable " forecast

"International Rating Agency Standard & Poor's (S&P) affirmed the long-term credit rating of Bashkortostan Republic as 'BBB-' “, the Government RB informs with a reference to "Interfax".

In its press release, S&P noted that Bashkortostan’s ratings reflect "highly positive" liquidity situation, low debt levels, moderately high current balances of the budget, due to the strategy adhering to conservative policies on spending, and low level of contingent liabilities.

According to analysts of the rating agency, in 2013-2015 the republican GRP will grow at a rate above the national average, which will increase revenues and offset the pressure of expenditure commitments.

"Stable" forecast reflects the expectation of S&P that the continuation of sound expenditure policies will allow the republic to maintain high financial indexes with the deficit considering capital expenditures which will not exceed 7.8 percent, according to the baseline scenario. As a consequence, it is expected that the republic will maintain significant cash reserves - more than 20 billion rubles, which is much higher than the annual cost of debt service and the deficit after capital expenditures in 2014-2015.

“We can increase the ratings in the next 24 months if in the future Bashkiria spends even more conservative policy regarding their spending in the medium term, especially if the republic institutionalizes a balanced current policy on reserves and liquidity” the experts of the agency mark.

S&P also affirmed the long-term credit rating of Ufa as «BB-» and the national scale rating as «ruAA-». The ratings forecast of Ufa is "stable."