Credit Rating Review
Szczecin's borrowing credibility with institutional investors again is being evaluated following a visit from US-based ratings service Fitch.
The two-day session, which took place in May, is an annual event for the city and the service, which provides lenders with guidance about the credit-worthiness of borrowers on international debt markets. The rating affects the rate of interest the city pays when it borrows funds for operations and public works projects.
During the visit, Fitch analysts met with Mayor Piotr Krzystek to discuss the activities the city has undertaken in reaction to the ongoing global economic crisis. The delegation also talked with deputies with budgetary responsibility, city treasurer and other workers at City Hall.
The topics they covered included:
- Tax policy, including tax rates, exemptions and tax allowances;
- The state of city finances;
- Budget forecasting;
- The debt burden in the commune, including debt policy, credits for pre-financing of projects benefiting from European Union aid, debt limits and internal procedures, and liquidity management.
Awarded in 2008, Szczecin's BBB+/stable marked the second successive increase by the agency. City officials say this reflects the city's improving financial state.