On September 14, 2020, Russia's Analytical Credit Rating Agency (ACRA) affirmed the credit rating of Magadan region at BBB-(RU), with a stable outlook, the rating of the bond issue at BBB-(RU), the rating agency informed.
The credit rating of Magadan region (hereinafter, the Region) is based on the low operational efficiency of the regional budget combined with a significant need for debt financing, a moderately low level of capital expenditures, and low available liquidity. The rating is limited by the high concentration of the region economy on the extractive sector and a moderately high debt load.
Magadan region is located in the Far Eastern Federal District (FEFD) and is part of Russia's Far North. The Region is home to around 140,000 people (0.1% of the Russian population). According to the Region, its gross regional product (GRP) was approximately RUB 182 bln in 2019 (roughly 0.2% of Russia's aggregate GRP). The Region produces over 10% of the total gold mined in Russia, and around 60% of the country's silver.
