Assessment of Odessa's Credit Rating: New Opportunities
Recognizing the significance of an accurate credit rating assessment for the city of Odessa, the Department of Finance of the Odessa City Council has been collaborating with rating agencies for over ten years.
On December 5, 2024, the independent rating agency 'Credit-Rating' confirmed the long-term credit rating of Odessa at the level of uaAA-, with a 'stable' forecast.
This rating is based on the analysis of economic and financial indicators for the first half of 2024 and projections for the entire year, data on demographic trends, labor market conditions, the city's debt obligations, available municipal assets, and future plans.
Positive factors supporting the credit rating:
• a high level of budget revenues per capita, which reached 104.3% of the national average for local budgets in the first half of 2024;
• continuous growth in city budget revenues from 2014 to 2023 and the first half of 2024, alongside high liquidity levels;
• diversification of the city's economic activities and a low level of budget dependency on major tax payers;
• low consolidated debt burden on the city's budget and effective local debt management policies aimed at optimizing its volume and structure.
Factors limiting the credit rating:
• the adverse effects of Russian military aggression against Ukraine on the financial market, the overall economy, and the socio-economic development of communities;
• a significant need for additional funding for restoring urban infrastructure and utility services.
To enhance debt management and reduce financial burdens, the Department of Finance of the Odessa City Council plans to continue its partnership with rating agencies in 2025 for the update of Odessa's credit rating.
Information on all credit ratings assigned by the agency can be found on the website www.credit-rating.ua, as well as in BLOOMBERG and S&P Capital IQ systems.
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According to the rules established by the National Commission on Securities and Stock Market, credit ratings must be updated at least once every six months.
On February 28, 2022, the independent agency 'Credit-Rating' announced a negative outlook due to risks stemming from the war waged by Russia against Ukraine.
On March 31, 2023, the credit rating of Odessa was updated to uaAA-. The forecast remains stable due to effective local debt management.
