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Our strong financial structure is validated once again

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Fitch Ratings, one of the foremost rating agency in the world, validated İzmir Metropolitan Municipality’s strong financial structure once again.
In their report, Fitch Ratings stated that İzmir Metropolitan Municipality will continue its sturdy activity balance and margins in 2021-2023 period against Covid-19 pandemic and natural disasters such as earthquakes and flood.  Fitch Ratings underlined that İzmir which has diverse and vibrant local economy became resilient to the economic recessions expected to continue in the country in 2021-2025 period. While also rating İzmir’s debt management policies, Fitch Ratings recorded that even though Turkish Lira’s high risk of depreciation against Euro exchange rate, the fact that most of the debts of İzmir Metropolitan Municipality are fixed-rate reduces the interest rate risk. Fitch also drew attention to the solid connections İzmir has established with various local banks and multilateral international development banks thanks to its good financial performance history in planning and stated that İzmir probably would not experience an emergency liquidity shortage.
Expressing his satisfaction with Fitch Rating’s validation of İzmir Metropolitan Municipality’s credit rating once more, İzmir’s own Metropolitan Municipality Mayor Tunç Soyer said the following; “İzmir Metropolitan Municipality has maintained AAA, the highest rating given by the international rating agency Fitch Ratings. Maintaining the highest grade is as important as winning it. We will continue our operations to stay on top without a stop by showing the solidity of our steps that we have taken so far. In these difficult times where we have learned a lot from the effects of the pandemic, earthquake and the flood disaster that followed, I am truly proud on behalf of our city for the validity given by Fitch Ratings, which includes its solid financial structure and the strong performance of Izmir Metropolitan Municipality in its bulletins, that this city is well managed. As İzmir Metropolitan Municipality, we continue our big investment projects such as Buca Metro and Çiğli Tram with high determination. While these validations from international credit rating agencies give foreign investors the message that they can safely invest in İzmir, they also provide our Municipality access to various inexpensive and long-term international financing.
The credit rating grade of İzmir Metropolitan Municipality is the same as that of this country’s treasury. According to the rating agencies, institutions are not graded above the country grade even if they have a really great financial situation. Fitch Ratings gave a 'BB-' rating to Turkey as well as to the Izmir Metropolitan Municipality. According to credit rating assessment, “BB-” category indicates a high vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, it also specifies the expectation of business or financial flexibility to support the fulfilment of financial commitments. As for “AAA” grades; they are appointed only when there is exceptionally strong capacity to pay financial commitments while also expressing the expectation that the risk of default is lowest. This capacity is unlikely to be affected adversely by foreseeable events.
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