OREANDA-NEWS. National Rating Agency has affirmed its ‘A-’ credit rating on the Republic of Karelia’s Guarantee Fund (RKGF, or the Fund). The Fund was assigned NRA’s ‘A-’ credit rating on Oct. 29, 2012.

RKGF’s credit rating of ‘A-’, denoting high, level three, creditworthiness, reflects NRA’s assessment of the Fund’s guarantee protection reliability and RKGF’s ability to fulfill its guarantee obligations in full. The rating affirmation reflects RKGF’s important social-impact role in its home region. As the Fund grows, the amount of its guarantee obligations increases, which suggests RKGF’s improving ability to manage its guarantee capital.

In 2015, the amount of payments under guarantees charged against RKGF has decreased. The share of income from issuing guarantees has risen in 2015 due to the increased amount of issued guarantees.

NRA notes RGGF’s net profit reduction due to provisioning needs. Potential debtors’ claims are projected at RUR 11 million, while all previous claims have been met. In 2014, the amount of payments under claims totaled 15% of the Fund’s guarantee reserve.

NRA’s analytical products, including ratings and the contents of this press release, are statements of NRA’s independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.

While NRA has obtained information from sources it believes to be reliable, NRA does not guarantee that this information is perfectly correct, complete and accurate, as it does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.