Improved Moody’s rating reflects Ostrava’s excellent financial management
In June 2016 the international rating agency Moody’s re-confirmed the City of Ostrava’s existing A2 rating, but raised the City’s outlook from ‘stable’ to ‘positive’.
This improved rating reflects recent positive trends in Ostrava’s financial management, as the City has achieved very solid financial results, built up adequate reserves, kept its capital expenditures at reasonable levels, and reduced its debt.
Iveta Vozňáková, Ostrava’s Deputy Mayor with responsibility for finance and budgeting, commented on the change: “The improvement of our rating outlook from ‘stable’ to ‘positive’ sends out a clear signal that if the City continues along the same path, keeping our operating expenditures under control and improving the efficiency of City-owned commercial organizations, we have a realistic chance of achieving a higher rating – A1 – within the not too distant future.”
Ostrava’s Mayor Tomáš Macura added: “It is now exactly ten years since 2006, when Moody’s first rated us as ‘A2/stable’ – a rating that we have maintained consistently throughout this ten-year period. We see the improvement of our rating to ‘A2/positive’ as a reward for our constant efforts to ensure that the City’s finances are managed effectively, prudently, and with exemplary transparency. It is excellent news for all citizens of Ostrava.”
During the past 18 months, Ostrava’s overall level of debt has been reduced by over 350 million CZK to the current level of 3.4 billion CZK. This represents just 11,700 CZK per head of population – the lowest figure among all large Czech cities.