02.10.2023

International Credit Rating Agency Fitch Ratings confirmed the credit rating of Izmir Metropolitan Municipality as “AAA,” which is the highest score. Evaluating the report, Mayor Tunç Soyer said, “This table reflects Izmir’s determination to become one of the leading cities not only today but also in the future.”

 

Izmir Metropolitan Municipality, which implemented the city’s historical investments one by one in Turkey’s economic crisis environment, managed to maintain the “AAA” rating, the highest national credit rating given by the International Credit Rating Agency Fitch Ratings.

Fitch Ratings published a report on September 29, 2023, after the meeting where the municipality’s 2022 year-end and 2023 half-year data were on the agenda. It was stated in the report that Izmir’s operating performance reflects expectations that it will remain resilient despite the inflationary working environment, the depreciation of the Turkish Lira, and the increasing investment expenditures before the local elections. Thus, Izmir Metropolitan Municipality will be able to continue to provide financing from foreign and regional markets despite the negative reflection on the country’s economy, with the highest national credit rating “AAA” given by Fitch Ratings.


 

“It makes it easier for us to look to the future with hope.”

 

Evaluating the report, Izmir Metropolitan Municipality Mayor Tunç Soyer said, “We are happy to receive the best score in Fitch Ratings’ scorecard again. These notes reflect the ability of our municipality to fulfill its duties in its area of ​​responsibility. This high credit rating given to Izmir by Fitch Ratings reflects Izmir’s determination and success in becoming one of the leading cities not only of today but also of the future, once again revealing its economic resilience and development potential. “Seeing the increasing trust of both domestic and foreign market investors in our Municipality thanks to credit scores makes it easier for us to look to the future with hope,” he said.

“We will accelerate the development of our city”

Mayor Tunç Soyer stated that, as Izmir Metropolitan Municipality, with its AAA rating, they will be able to access financial resources more efficiently and continue to implement large projects, and continued: “In this way, we will be able to accelerate the development of our city. I am thrilled that we will continue to work without hesitation, with all our might, to take our city even further. “In this regard, we will continue to focus on sustainable, innovative, nature-friendly investments that will have an impact on the coming years,” he said.

What’s in the Fitch Ratings report?

In the latest published Fitch Ratings report, it was emphasized that Izmir’s access to international financial markets was strong, and its weak year-end cash position was alleviated by its access to committed loan facilities of 1.1 billion TL from national credit institutions with shorter maturities.

The report also cited why Izmir’s “National Long-Term Rating” is higher than its national peers because of its budget flexibility, ability to use a valuable asset base to create additional liquidity when needed, and strong access to financial markets.

It was stated that 87 percent of Izmir’s debt is in Euro, and the exchange rate risk can be mitigated thanks to the average maturity of the debt and the repayability of the loans, and the interest rate risk can be mitigated by the fact that the majority of the loans have fixed interest rates.

“AAA” is the highest credit score

Evaluating the financial structures and corporate performances of countries and institutions, Fitch Ratings provides investors in local and foreign markets with information about countries and institutions through its bulletins.

The “AAA” category means that it is investment grade and its ability to meet its financial obligations is extremely high.

 

“AAA” from Fitch Ratings

Other News