Ostrava has the highest possible rating in the country

7/6 2019

The rating agency Moody's updated the City of Ostrava's rating . The City's rating was confirmed as A1 with positive outlook. This excellent rating was based on a detailed analysis of the City's financial management during the past year, its current financial situation, and the future outlook in the context of projected economic, political, demographic and other developments.

Ostrava has the highest possible rating in the country

Source: Ostrava City Authority Archive; Lukáš Kaboň

The confirmation of Ostrava's A1 rating reflects:

  • the City's solid operating results, supported by an increase in tax revenues and strict control of  expenditure,
  • ample cash reserves,
  • a low level of debt thanks to the City's prudent capital expenditure plans,
  • manageable mid-term borrowing requirements (slightly above-average).

The rating outlook is positive, reflecting the positive outlook of Czech government bonds combined with the City's improving financial results, decreasing debt levels and adequate liquidity.

Currently the City of Ostrava has the same rating as the Czech Republic (A1/positive), i.e. the highest rating that a Czech city can be assigned. Currently, only Ostrava, Prague, Brno, Prostějov and Česká Lípa have the same rating.

If the Czech Republic's rating is increased in the future, Ostrava's rating could also increase – provided that the City continues to post good financial results and maintains mid to low debt levels.

The City's solid operating results, increased cash reserves and modest capital expenditure should lead to a further decrease in the City's debt level in the mid-term. By the end of 2018 the City's direct and indirect debt had fallen to 20% of current income (from 25.2% at the end of 2017). As of 31 December 2018, the City's total debt was 2.13 billion CZK, and its direct debt per capita was 7,347 CZK.

The City of Ostrava has been rated by Moody's since 1997. From 1997–2001 the agency rated Ostrava's debt securities, and in 2002 it began rating the City as an issuer. The City's rating has improved over the years from an initial rating of Baa1 to the current rating A1.


rating Baa1 A3 A2 A2 A1 A1 A1
outlook - stable stable positive stable positive positive