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13.12.2017
The rating of Odesa confirms at uaАА-
Today, Credit
Rating Agency has confirmed a long-term credit rating of the city of Odesa at
uaАА- with the stable outlook.
The credit rating is based on the results of the
analysis of economic and financial indicators for 1H2017, information on the city’s
demographic situation, labor market, debt obligations, available community property, and
long-term plans for the future.
An obligor or a debt liability withuaAAcredit rating is characterized with the VERY STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. A plus"+"and a minus"-"signs indicate intermediary categoriescompared to the standard categories (grades).
A Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors supporting the credit rating:
- The high level of the city’s fiscal capacity: in 1H2017 the amount of the city’s budget revenue item per capita, excluding transfers, exceeded the average value of local budgets by 15.6% and the indices of many other cities of Ukraine having a comparable administrative-territorial status;
- The high growth rates of the budget revenues excluding transfers (130.4% in 2015, 148.4% in 2016 and 131.9% in 1H2017), including as a result of a positive effect of the budget and tax reforms;
- Diversification of the city’s economic complex by lines of businesses as well as a low level of concentration of the budget revenues by principal taxpayers and other compulsory payments;
- Moderate sensitivity of the city’s economic complex and budget to economic risks;
- Effective policy of the city authorities for local debt management in order to optimize its amount and structure and good credit history.
Factors constraining the credit rating:
- The high demand for additional financing, including for the restoration of urban facilities and housing and municipal facilities;
- The effect of adverse factors on the financial market as well as a low and unstable economic activity in certain economy sectors that adversely affects the growth potential and paying capacity of business entities.
A full rating history of the city of Odesa may be found at the Agency’s website.
Information on all credit-ratings, assigned by the Agency according to the National Rating Scale, may be found in REUTERS, BLOOMBERG, S&P Capital IQ and TRData information systems.
For more information,
please contact:
Relevant analytics department, Elena Samoylova, phone: (044) 490-25-50
