Credit-Rating confirms the rating of Odesa at uaАА-, determines investment attractiveness at uaINV5 (the highest level)
15.06.2020
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 2019, 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 uaAAcredit 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 2019 the amount of the city’s budget revenue item per
capita, excluding transfers, exceeded the average value of local budgets by 9,4% 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 in 2015-2019;
- 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;
- slowdown in
macroeconomic growth due to restrictions of economic activities as a result of the
introduction of a quarantine in order to prevent the distribution of COVID-19 as well as
the influence of adverse factors on the financial market, national economy and
social-economic development of certain communities, state and local finances.
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 in REUTERS, BLOOMBERG, S&P Capital IQ and TRData information
systems.