For the first time in a decade, Fitch rated Ukraine’s Odesa as a bond issuer, giving it a stable outlook

Categories: Eastern Europe, Monitoring, and Ukraine.

For the first time in 10 years, the international rating agency Rating Fitch has assigned Odessa a long-term issuer default rating in foreign and national currencies at the “B-” level.

The outlook on the ratings is “stable.” It is expected that the city will maintain good operating results in the medium term.

The rating takes into account the expected low direct debt of Odessa in the medium term, low contingent liabilities for guarantees issued to city companies. In 2018, direct debt could increase to 9% of the revenues of the municipality (900 million UAH).

Odessa officials plan to provide urban enterprises with about 860 million UAH of financial guarantees for investments, settlements on obligations of enterprises, covering their losses. In 2017, the amount of financing was 1.3 billion UAH.