On Wednesday, April 23, 2025, the Oradea City Hall announced a significant affirmation regarding its financial standing. The Fitch rating agency has reconfirmed the municipality in the category with 'Highest Credibility,' a designation that underscores Oradea's capacity to meet all its financial obligations promptly. Mayor Florin Birta expressed optimism about this development, stating that it ensures access to international lending markets and facilitates reduced interest rates for the city.
Fitch Ratings, an internationally recognized agency, officially reconfirmed the ratings for Oradea Municipality on April 14, 2025. The ratings are as follows: for long-term loans in foreign currency, the city holds a rating of BBB-; for long-term loans in the national currency, it also holds a BBB-; and for short-term loans in foreign currency, it is rated F3. Additionally, the Standalone Credit Profile (SCP) of Oradea remains at a-.
This rating reflects not only the municipality's robust financial management but also signals a low risk for investments in the city. According to the statement from the City Hall, the rating indicates the local public administration's ability to repay loans and manage short-term payments effectively.
In a press release, the Oradea City Hall elaborated on the implications of the Fitch rating. They noted, "The rating awarded to a local public authority represents the opinion of a specialized agency regarding the respective authority's capacity to meet all financial obligations on time." This affirmation is crucial for attracting potential investors and ensuring the financial stability of the municipality.
The reconfirmation of Oradea's rating comes amidst the city's involvement in the most complex investment program seen in recent decades. The projects are financed through the National Recovery and Resilience Plan (PNRR) and the European Regional Development Fund, both of which require significant co-financing. Mayor Birta emphasized the importance of maintaining a high credit rating in this context, stating, "Currently, our municipality is engaged in the most complex investment program in the last several decades. The projects financed through PNRR and the European Regional Development Fund require substantial co-financing, for which we need to resort to bank loans. Holding ratings from the 'Highest Credibility' category ensures our access to international lending markets and reduced interest rates."
The city officials have highlighted that the performance of the local administration in managing financial resources, obligations, and particularly bank loan contracts, has been recognized by Fitch Ratings. This acknowledgment is noteworthy, especially considering the challenges posed by persistent inflation and a complex investment plan.
The Standalone Credit Profile (SCP), which reflects the individual credit profile of Oradea without considering interdependencies with central authorities, remains at 'a-'. This rating indicates a medium-low risk profile, further reinforcing the municipality's solid financial footing.
Fitch's analysis systematically identifies and quantifies the risks associated with the economic system of the municipality, which invests, finances, and borrows. This thorough evaluation provides relevant and internationally valuable information about the entity.
In summary, the reconfirmation of Oradea's rating in the investment-grade category, which denotes the highest credibility, highlights the low risk for investments in the city and the local administration's capacity to repay loans and make timely short-term payments. This development is a positive signal for potential investors and stakeholders interested in the financial health and future projects of Oradea.
As the city continues to navigate its ambitious investment agenda, the backing from Fitch Ratings serves as a crucial asset, ensuring that Oradea remains an attractive destination for investment and growth. The administration's commitment to financial prudence and transparency will undoubtedly play a significant role in sustaining this positive trajectory.
