Page
Page Content
 DOWNLOAD
|
|
07
December
|
Izmir holds its rating of “Investible Credit” |
Fitch Ratings which is worldwide known credit rating agency, held rating of “investible credit” of Turkey.
In Fitch’s statement, together with Izmir Metropolitan Municipality’s “investible” and credit grade have “positive” course stood out together with financial strength continuity. Fitch, in December 2015 report, stated that it approved Izmir Metropolitan Municipality’s local and foreign currency long term credit grade “BBB-” and national long term grade “AA+(tur)”.
Consequently, Izmir Metropolitan Municipality has increased 9 grades for local and foreign currency and 6 grades for national long term credit grade since 2008.
In worldwide known credit agency Fitch Ratings’ last report, it is emphasized that Izmir Metropolitan Municipality’s strong operating performance’s above 50% and the discipline of expense management which is combined together with nearly 100% budget realization.
In the report, Izmir Metropolitan Municipality is estimated to continue strong operating margin between 55-65 in 2016-2018 term. Besides, together with the 6360 numbered effectuated law, it is also newly added that capital investment expenses will be made however, former financial performance of the municipality and capacity of financing on its own, any dissolution is expected in capital investments.
In Fitch’s statement, it is come to the fore that in 3rd quarter of year 2015, strong cash reserve which is 20% of operating income will be.
Debt Management is Prudent
In Fitch’s Izmir report, though the depreciation of Turkish lira, capital accumulations are being made in foreign currency and a prudent debt management is made. In Fitch Rating’s report, the strategic plan of Izmir Metropolitan Municipality which involves 2014-2019 year, finance obtained for debts which are estimated to widen public transportation is stated. In the report, the rate of municipality’s direct risk in 2016 to current income is estimated to be below 50%.
In Fitch Rating’s report, between 2015-2018 year term, it is strongly expected that Izmir will amortize the debt directly and together with the estimated increase “direct risk’s rate to current account balance is below 1” is in.
All News
Previous News
Next News