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.