City of Odessa rated 'AA-(ukr)' with stable outlook
MUMBAI (Thomson Financial) - Fitch Ratings has assigned the Ukrainian city of Odessa a national long-term rating of 'AA-(ukr)', long-term foreign and local currency ratings of 'B+', and short-term foreign currency rating of 'B' with a stable outlook.
The ratings reflect Odessa's strong and diversified local economy that allows for stable budgetary performance, its high capital spending, improved debt structure, significant budget rigidity and heavy reliance on a single revenue source for financing capital investments, Fitch said.
The stable outlook reflects the ratings agency's expectations that economic growth will further drive operating and capital revenue gains to compensate for expected operating expenditure pressures, providing the city with sufficient capital expenditure funding.
Despite growing land and property prices, the reliance on a single large income source leaves the city's investment programmes vulnerable to land and real estate price fluctuation in the region, Fitch added.