Credit-Rating confirms the rating of Odesa at uaАА-, determines investment attractiveness at uaINV5 (the highest level)
25.05.2018
Today, Credit Rating
Agency has confirmed a long-term credit rating of the city of Odesa at
uaАА- with the stable outlook. The City’s
investment attractiveness has been determined at uaINV5 (the highest level). The
credit rating is based on the results of the analysis of economic and financial
indicators for 2017, 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).
AStableoutlook 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 2017
the amount of the city’s budget revenue item per capita, excluding transfers, exceeded
the average value of local budgets by 12.3% 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 129.1% in 2017), 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 at www.credit-rating.ua as well as in REUTERS, BLOOMBERG,
S&P Capital IQ and TRData information systems.