The credit rating of Kharkiv has increased
The international rating agency "Moody's Investors Service" has changed the credit forecast of Kharkiv city from "negative" to "stable" and confirmed the long-term issuer rating in foreign and national currencies at "Caa3" and the baseline credit assessment (BCA) at "caa3"
"Moody's Investors Service" notes that the change in credit forecast reflects the reduction of uncertainty concerning the probability of solvency falling below the "Caa3" level, despite still considerable degree of uncertainty surrounding the full-scale war and its credit consequences.
The confirmation of the "Caa3" rating reflects Moody's assessment that Kharkiv remains under financial pressure, but the City continues to fulfill its administrative obligations as a whole and provide essential services while maintaining the favorable debt position and liquidity.
As reported by Deputy Mayor - Director of the Department of Economics and Municipal Property Mykhailo Fatieiev, Kharkiv has been able to adapt to working conditions during wartime and continues to fulfill its administrative duties.
"The City has repaid most of its debts and is able to service the remaining unpaid debts which are at a very low level," Mykhailo Fatieiev emphasized.
According to "Moody's Investors Service", during the war and after its ending, Kharkiv will collide with very high financial needs, including ones for reconstruction, which will put additional pressure on the debt position and liquidity.
By confirming the "Caa3" rating, Moody's has kept the rating of Kharkiv city one step higher than the rating of the Ukraine`s government.