The impact of institutions on regional credit ratings in Russia

Relevance. Institutions of a fiscal system play significant role in regional credit ratings. This is reflected the low creditworthiness Russian regions from international perspective. Research objective. The paper discusses institutional factors ratings assigned to by and agencies. Data Methods. study analyzes rating methodology adopted agencies tests presence conducting formal regression analysis based on data budgetary systems Russia United States. Results. We demonstrate that value factors, while use quantitative indicators. By applying comparative economic indicators U.S. states, we found Big Three (Fitch Ratings, S&P Global Ratings Moody's Investors Service) rate lower than although between two at level do not differ as much. Conclusions. conclude perspective reflects weakness institutions system. Practically, assessment highlights areas intergovernmental relations need improvement, most notably insufficient tax spending autonomy local governments.