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Fitch confirmed the rating of the Oradea city at ‘BBB minus’ with stable perspective
Fitch Ratings confirmed the ratings for the long-term loans in foreign currency and local currency of the Oradea city at ‘ BBB minus’ the perspective associated being stable, a press release of the agency for financial evaluation said.
Similarly, the agency confirmed the short term rating in foreign currency at ‘F3”.
The confirmation by Fitch of the ratings for long-term loans in foreign currency and in the local currency shows the financial performance of Oradea, including the sustainability of the own income out of taxes, following the progress of the local economy and improvements of the collection quotas.
The rating attributed to the Oradea city takes into account the present necessities of investment of the city, which could need a supplementary increase of the debt between 2017 – 2018.
However, the agency expects that the level of the debt be in line with the estimates, following the careful management of the debt.
Fitch estimates a growth of the GDP of Romania of 4.8% in 2017 and 3.9% in 2018 which should support the transfers of the city, especially following the redistribution of the VAT which is collected by the government and transferred to the local authorities.
Oradea is the capital city of the Bihor county (197,367 inhabitants) and benefits from the proximity to the border with Hungary and following the setting up of an industrial park it has become attractive to investors and for those who try to find a work place. The expansion of the industrial park supported the foreign direct investments and local investments (which reached 285 million euro) and the creation of 6,190 new work places.