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.