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31.03.2023
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-. Rating placed on the CreditWatch.
The ranking forecast has been changed from 'negative' to 'developing'. The change in the forecast is due to the city government's efficient policy of local debt management and a significant reduction in the debt burden on the community budget resulting from early repayment of loans taken by the city council.
The credit rating is based on the results of the analysis of economic and financial indicators for the 1st-3rd quarters of 2023, 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 Developing outlook indicates that there is a high possibility for a rating to be changed in the course of the year.
Placement on theCreditWatchindicates 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 the 1st-3rd quarters of 2023 the amount of the community budget revenue of the general fund item per capita, excluding transfers, exceeded the average value of local budgets by 3,1% and the indices of many other cities of Ukraine having a comparable administrative-territorial status;
- Increased budget revenues excluding transfers in 2014-2021 and in the 1st-3rd quarters of 2023 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;
- 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 at www.credit-rating.ua as well as in REUTERS, BLOOMBERG, S&P Capital IQ and TRData information systems.
For more information,
please contact:
Relevant analytics department, Olena Samoylova, phone: (044) 490-25-50
