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22.07.2022
Credit-Rating confirms the rating of Odesa at uaАА-
Today, Credit Rating
Agency has confirmed a long-term credit rating of the city of Odesa at
uaАА-. Rating placed on the CreditWatch with the negative
outlook. The credit rating is based on
the results of the analysis of economic and financial indicators for 2021, 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 with uaAA credit 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 Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on the condition that negative tendencies are maintained and that current risks are realized.
Placement on the CreditWatch indicates that the agency is currently considering the rating change due to events or evolving trends which might significantly impact the creditworthiness of such obligor or debt liability.
Factors supporting the credit rating:
- The high level of the city’s fiscal capacity: in 2021 the amount of the city’s budget revenue of the general fund item per capita, excluding transfers, exceeded the average value of local budgets by 8,6% and the indices of many other cities of Ukraine having a comparable administrative-territorial status;
- Increased budget revenues excluding transfers in 2014-2021 as well as sufficient liquidity ratios;
- 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 negative impact of the consequences of Russian military aggression against Ukraine on the financial market, national economy and social-economic development of certain communities, state and local finances, and the level of real income of the population;
- The high demand for additional financing, including for the restoration of urban facilities and housing and municipal facilities.
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 BLOOMBERG, S&P Capital.
Relevant analytics department, Olena Samoylova, phone: (044) 490-25-50
e.samoilova@mail.credit-rating.com.ua
