Warsaw, 30 Apr 2020. Fitch Ratings, the American provider of credit ratings, has revised the Outlook on the Ukrainian City of Odessa’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Stable from Positive.
The revision of the Outlook follows that on Ukraine (see “Fitch Revises Ukraine’s Outlook to Stable; Affirms at B” – dated 22 April 2020 on www.fitchratings.com) as we continue to view Odessa’s ratings as being constrained by that of the sovereign. The city’s standalone credit profile (SCP) has been revised down to ‘b+’ from ‘bb-‘ as consequence of the worsening debt ratios under the new rating scenario taking into account the impact of COVID-19 on Odessa’s local economy.
Odessa is the third-largest city in Ukraine (one million inhabitants) and has its key port in the Black Sea. The city is an important administrative, industrial, educational and cultural centre. Its economy is diversified across services and manufacturing. Fitch estimates the Ukrainian economy grew by 2.9% in 2019, supporting the city’s economic prospects and tax revenue growth. However, the wealth indicators of Ukraine and Odessa are weak by international comparison, with a national GDP per capita well below the EU average.
The next scheduled review date for Fitch’s rating on the City of Odessa is 5 June 2020.
Source: Fitch Ratings