Municipality rating
The rating given to a local public authority is the opinion of a specialised agency on the ability of that authority to meet all its financial obligations on time.
Rating agencies systematically identify and quantify the risks to the economic system of an entity investing, financing and borrowing. At the same time the rating provides relevant and internationally understandable information about an entity.
Oradea City Hall's relationship with Fitch Ratings started in 2006, when the agency won the tender for the contracting of this service, initiated under HCL 1054/2004.
Having a municipal rating brings international notoriety, facilitates access to financing from international financial institutions (EBRD, EIB) and cost savings on loans taken out/guaranteed.
Equally, by providing information about a community's attractiveness and competitiveness, holding an international rating is a calling card for strategic investors.
Aspects analysed:
- - political context
- - local autonomy, dependence on the state budget
- - organisational structure
- - staff development
- - the relationship with companies in which the municipality is a majority shareholder/partner, their dependence on the local budget
- - the indebtedness of the municipality and its capacity to contract new loans
- - financial performance
- - investment policy of the municipality
- - fiscal policy
