Credit-Rating confirms the rating of Odesa at uaАА-

17.12.2019

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 1H2019, 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 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 1H2019 the amount of the city’s budget revenue item per capita, excluding transfers, exceeded the average value of local budgets by 12.1% and the indices of many other cities of Ukraine having a comparable administrative-territorial status;
• The high growth rates of the budget revenues (transfers excluded) in 2015-2018 and 1H2019;
• 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;
• Complicated political situation in the country and influence of adverse factors on the financial market as well as unstable business environment in certain national economy sectors that negatively affects the growth potential and financial solvency of the market participants.

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.