On April 8, 2021, Russia's Analytical Credit Rating Agency (ACRA) affirmed the credit rating of affirmed the rating of the Republic of Mordovia at B(RU), with a stable outlook, the rating of the republic's bonds at B(RU), the rating agency informed.
The credit rating of the Republic of Mordovia (hereinafter, the Region) is based on the Region's very high debt load with high risks of refinancing debt obligations in the short term and the positive balance of current operations amid declining share of internal budget revenues. The rating is restricted by the moderately low economic profile, lack of free liquidity, high debt service costs, and negative modified deficit forecasted for 2021, ACRA notes.
The Republic of Mordovia is part of the Volga Federal District. It has a population of 0.8 million (0.5% of the total population in Russia). The Region's GRP was RUB 263 bln in 2019 (0.3% of the total GRP of Russian regions). According to the Region's estimates, its GRP amounted to RUB 260 bln in 2020.
