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13.06.2024
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-.
The rating forecast has been changed from ' Developing ' to 'Stable'. Rating excluded from CreditWatch. The change in the forecast is due to the city government's efficient policy of local finance and 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 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 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 the 2023 the ratio of the amount of the community budget general fund revenue (excluding transfers) item per capita to the average value of local budgets was 100,8%;
- Increased budget revenues excluding transfers in 2014-2023 as well as high 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;
- Low debt burden on the community budget as well as 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 smida.gov.ua, BLOOMBERG, S&P Capital IQ information systems.
Relevant analytics department, Olena Samoylova, phone: (044) 490-25-50
e.samoilova@mail.credit-rating.com.ua
