For Kryvyi Rih, the credit rating of the issuer's default in foreign and national currency was confirmed at the level of "B" with a "Stable" outlook

Pub Date:May 27, 2021

On 21 May 2021, the international rating agency Fitch Ratings reaffirmed the previously assigned credit rating of the city of Kryvyi Rih.

It should be mentioned that in June 2020, the international rating agency Fitch Ratings, for the first time, assigned to Kryvyi Rih a long-term issuer default rating (IDR) in foreign and national currency at "B" with a forecast of "Stable", short-term IDR in foreign currency "B" and national rating "A + (ukr)" with "Stable" outlook.
The assigned and confirmed city rating is a criterion of confidence for international financial organizations and potential investors willing to invest their funds in priority municipal projects (energy efficiency, urban public transport development, road safety, education, medicine, socio-economic projects, etc.).
The credit rating is based on the results of the analysis of actual and forecast ratios of income, expenses and financial risks.
The confirmed credit rating of the city indicates that operational indicators and debt ratios will remain at the same level as other "B-rated entities" in the medium term, despite the economic downturn caused by the coronavirus pandemic. The rating reflects the city's Standalone Credit Profile (SCP) at level "b" as a result of a combination of a "vulnerable" risk profile and an assessment of debt sustainability at level "a".
Kryvyi Rih's credit rating is limited by the sovereign default rating of the issuer of Ukraine, which is at the level of "B", and therefore, the indicators of the assigned credit rating of Kryvyi Rih have the maximum allowable value. It should be noted that only Kyiv, Kharkiv, Odesa, Lviv, Dnipro, Zaporizhzhia and Mariupol have the same ratings.