Considered for the fifth time by Fitch Ratings, one of the most respected credit rating agencies in the world, Izmir Metropolitan Municipality managed to maintain its credit rating of inci BB + stable Dün. Including Japan and Spain also found that many countries in the downgrade, leading to Fitch Ratings, Turkey's credit rating in parallel with the İzmir Metropolitan Municipality's local and long-term foreign currency 'BB + stable "looking credited with the note" A stable "outlook and national long While confirming the term rating, he stated that the transparent and stable financial structure of İzmir continued to be strengthened.
In a statement dated June 19 by the renowned rating agency Fitch Ratings, 2012 stated that the 2007 billion 1 million TL debt liability of 457 in 2011 decreased to 177 million 700 thousand at the end of 2012. to be paid in full, the assessment was stated to be effective. According to the statement, Izmir Metropolitan Municipality has made the best budget performance in 2011 in the evaluations made up to now and the ratio of pre-borrowing budget surplus to total income is at 11,5 level.
In Fitch Ratings report about the 5% of Turkey's population of hosts and in the center of Izmir's diversified economic structure of the national income to 8%, 10% of tax revenues and exports, which contributed to xnumx's%, which is above the national average and a strong socio-economic structure with indicators of prosperity and growth.
”The management of the municipality is successful“
In the report, it was stated that the biggest share in the expenditures of İzmir Metropolitan Municipality was allocated to urban transformation and public transportation systems. Excluding debt repayments; capital expenditures will continue to constitute% 50 of total expenditures and investment expenditures are managed within the budget of İzmir with successful management of the municipality. Fitch experts, İZBAN began to operate with a high capacity to increase the ticket revenue is expected to make a strong contribution to the municipality. The report stated that with improved budget realizations, disciplined operating expenses provided greater flexibility to the Metropolitan Municipality in managing their operating margins. The statement also states that Izmir Metropolitan Municipality has managed to keep its share of the required expenditures at predefined levels and has the ability to fund investments; In parallel with the national financial measures since 2009, Izmir Metropolitan Municipality managed to realize the projected revenues at the rate of% 97.
In the Fitch evaluation, considering that most of the traffic is near the Gulf of Izmir, the Metropolitan Municipality aims to bring the sea transportation as an alternative to other transportation branches and buy the modern ferries that will meet these objectives and presses the button for the construction of new piers which are compatible with the new ferries. The necessary approvals were received from all authorities for the mentioned ferry projects, and the Metropolitan Municipality was negotiating with international multilateral lenders for project financing. The report states that the recently renovated suburban train line will link the new tram lines and the line is planned to connect the most densely populated areas of the city. It was also emphasized that the approval of the State Planning Organization and the Undersecretariat of Treasury was expected for the realization of this tram project.
What do the notes mean?
Fitch Raitings's ığ BB + stationary l grade given to İzmir Metropolitan Municipality shows that the institutions and securities in this category are regarded as having minimum speculative features by the market and can be affected by the negative developments in the economy over time. The, AA stagnant, national credit rating received by the Izmir Metropolitan Municipality, as well as the expectation of very high credit quality and very low credit risk, also means that the capacity to meet the payment obligations on time is very strong. According to the criteria of rating agencies, institutions are not graded above the country rating, even if their financial situation is very good.
Source : http://www.izmir.bel.tr