Recognizing the importance of a qualified 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 10 years.
On December 5, 2024, the independent rating agency «Credit-Rating» announced the confirmation of Odessa's long-term credit rating at uaAA-, with a stable outlook.
The rating is based on an analysis of economic and financial indicators for the first half of 2024, as well as expectations for the entire year, demographic data, labor market conditions, information on the city’s debt obligations, available communal property, and future plans.
Supporting Factors for the Credit Rating:
• a high level of budget security: the ratio of general fund budget revenues per capita to the average local budget indicator was 104.3% for the first half of 2024;
• growth in budget revenues (excluding transfers) from 2014 to 2023 and in the first half of 2024, along with high liquidity indicators;
• diversification of the city’s economic activities and low concentration of budget revenues from major taxpayers;
• a low consolidated debt burden and effective city management policies to optimize its volume and structure.
Limiting Factors for the Credit Rating:
• the negative impact of Russian military aggression on the financial market, the economy, and socio-economic development of communities;
• a significant need for additional funding, including for the restoration of municipal infrastructure.
Given the crucial nature of the credit rating assessment for local debt management, the Department of Finance of the Odessa City Council will continue its collaboration with the rating agency in 2025 to update the city's credit rating.
Information on all credit ratings determined by the agency according to the National Rating Scale can be found on the website www.credit-rating.ua and in the BLOOMBERG and S&P Capital IQ informational systems.
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According to the regulations established by the NCCC, the rating update must occur at least once every six months.
On February 28, 2022, «Credit-Rating» announced that due to war-related risks, all ratings were placed on a watchlist with a change in outlook to «negative».
On March 31, 2023, the rating agency «Credit-Rating» updated Odessa's credit rating to uaAA-. The outlook remains stable.
