Rating agency CRA conducted a rating of the Kosice Self-governing Region and concluded it with excellent results. Mr. Rudolf Bauer, President of the Kosice Self-governing Region (KSR), took a certificate from CRA Director in Slovakia Mr. Lubomir Dubecky.
„Kosice Self-governing Region is the first region in Slovakia, which obtained rating and by its excellent evaluation became one of the best rated communal subjects in Slovakia. Banks, investors and partners cooperating with KSR do not have to be afraid of its ability to fulfill and repay its obligations fully and on time,“ said Mr. Lubomir Dubecky.
CRA Rating Agency, a.s., evaluated the Kosice Self-governing Region as follows:
- Long-term local CRA Rating – level Aa
- is a high investment area rating, which ranks the Kosice Self-governing Region among high-quality subjects with high ability to repay its future SKK obligations;
- Long-term international CRA Rating – level Baa
- which is also an investment area rating, which ranks the Kosice Self-governing Region among site subject with very good ability to repay its future foreign currency obligations;
- Short-term CRA Rating – level skP-1
- which is the highest possible rating, expressing the maximal ability of the Kosice Self-governing Region to repay its short-term SKK obligations (1 year maturity period);
- the perspective of all these ratings is stabile.
Decision of CRA to give the KSR so high rating is based mostly on economic fundaments of present budgetary management, which is a very good basis also for the next period. Agency values the present line of KSR management, which subordinated its expenses policy to possibilities of financial base, and believes that it will continue in this line in the future. According to CRA, conservative budget policy has its irreplaceable position in particular in so unstable environment, in which the self-governing regions existed during the last years. According to the rating agency, fiscal decentralization brings significant increase of financial flexibility of the budget and it would be appropriate for the KSR to use it to strengthen stability and sustainability of budget management.
Mr. Lubomir Dubecky said that this high rating of the self-governing region, the first one in the history of Slovakia, founds a new tradition of possibilities and development of financing of self-governing regions in Slovakia. This significant and world-recognised financial tool is for KSR important in two ways. CRA RATING AGENCY is the only recognised local rating agency in Czech Republic and Slovakia. KSR gained, on the basis of excellent rating by CRA, an important instrument for attracting investors, alternatively for offering a credit with very advantageous conditions. Rating analysis specifically gives objective data about the state of KSR, which is immediately at disposal in case of the need of credit to implement the project for potential investor, which means a noticeable saving of time. On the other hand, excellent rating of KSR is a sign of excellent credit and also present and future management of KSR. It gives the public a possibility to evaluate the results of the present elected representatives of the region. No less important are recommendations of rating agency for the future work and activities of KSR. „This evaluation of KSR gave the rating in Slovakia a new dimension,“ said at the end Lubomir Dubecky.
CRA RATING AGENCY, a.s. is the only recognized local rating agency in Slovakia and Czech Republic and at the same time the only Central European affiliate of Moody`s Investors Service.
