Odessa received the rating from the Agency Fitch Ratings. Photo: Antikor
9 February 2017, the international rating Agency Fitch Ratings has assigned the city of Odessa long-term default rating at “b–”. The long-term rating Outlook is stable.
Fitch Ratings is an American Corporation, known as a rating Agency. Fitch along with Standard&Poor’s and Moody’s is included in TOP-3 international rating agencies. The main task – providing the world’s credit markets with independent and forward-looking credit ratings, analytical researches and data.
Prior to that, Odessa Fitch rating was assigned in 2008. All subsequent years of the event to update was not performed.
In 2017, the Odessa city Council resumed the practice of cooperation with international rating agencies.
The economic development Department of the Odessa city Council was a contract with the Polish office of Fitch Polska S. A.
4 months took the joint work of experts of Department of economic development and the Department of Finance on the preparation of financial statements, a detailed economic information and calculations of the various coefficients according to the international standards required by the Agency to determine the rating.
Long-term credit rating at “b–” approved at the same level as the similar indicator for Ukraine. Fitch Ratings analysts also note that the rating is limited by Ukraine’s rating consequently, when the improvement for the whole country, the rating will automatically increase.
The assignment of credit ratings from international rating agencies for the city is not only an image factor but also the real indicator, which repelled the international financial institutions, organizations and investors when making decisions to grant funding.
“The ratings from “big three” determines the availability and cost of financial resources for major city projects,” – said the Director of the Department of economic development Odessa city Council Sergey Tetyukhin.
“Existing loan agreement with the European Bank for reconstruction and development on the acquisition of 47 trolley buses in the amount of 8 000 000 euros determined the scale at which a percentage of the loan is determined according to the rating of the city. Base rate (no rating) is 7%, and rated “B–” – it is 6%. Thus, the city annually will receive savings in the amount of about € 60,000 from a reduction in the amount of interest for using credit funds” – said the head of the Department.
Getting Odessa rating Fitch sovereign rating of Ukraine once again proves that the city government demonstrates an effective model of interaction with international financial institutions, and financial management of the city.