I. STATEMENT ON RATING

Slovak rating agency acknowledged following ratings to City Levice:

Long-term local currency rating    BBB (stable outlook)
Long-term foreign currency rating    BB (stable outlook)
Short-term rating    S2

The granted long-term rating in the category of transactions in Slovak crowns BBB (stable outlook) is two degrees below the rating of the Slovak Republic. In the category of transactions in foreign currencies rating BB (stable outlook) has been granted to the City Levice. Short-term rating of City Levice is S2, which is the best possible short-term rating for the entities attaining long-term rating BBB.

Rationale:

Strategic planning as well as clear city development conception continues to be the strength of the city. Strategic targets of the city development for the next election period are based on the Program of city development for the time period between 2003-2006, which is developed for various areas - living environment, education, sport and culture, social area, security of inhabitants, city property, business environment, housing area, communication with inhabitants, social services.
One of the strategic targets of the city development will be the establishment of industrial park offering new working opportunities within the city and surroundings. Industrial park project Levice - Géňa will be a category I industrial park - this category presents the best prepared areas and projects for the investors. Some European and Asian investors are interested in making investments in the industrial park Levice Géňa, while such investments are in negotiation process at the present. Advantage of this locality prepared for establishment of the industrial park is: clear ownership relations, excellent traffic accessibility and presence of distribution system in the locality.
Development of financial situation of the city is a result of high-quality financial city management and despite of different finance provision level of delimitated competences on part of the state, we evaluate the situation as stable. In 2002, the city economy showed surplus in the amount of SKK 20,8 million and city indebtedness indicators reached positive values again. The city is already meeting criteria in accordance with new budget rules being effective as of January 1, 2005 - debt-service-to-current-revenues ratio has achieved 8,41 % as of ultimo of 2002 (maximum value - 25 %) and indebtedness-to-current-revenues ratio reached the value of 29,94 % as of ultimo of 2002 (maximum value - 60 %). We see positively the fact that restructuring of existing credits has been performed in the city in 2003 and the city got better interest conditions by realising of the tender. The city is constantly looking for possibilities of cost efficiency improvement, one of defined priorities of the city management is the revaluation of school facilities network in order to make the financial funds spent for education more effective.
The city is interested in improving the communication with the business area. Businessmen Council should be the new communication base. Target of the city is to contribute to creating of new working opportunities in this manner as well and to cooperate with investors having interest in making investments within the city.
Please don't hesitate to address your questions to autner@slovakrating.sk, or call +421 2 5464 5151.

Slovak Rating Agency
Bratislava, 08 July 2003

Long-term local currency rating	BBB (stable outlook)
Long-term foreign currency rating	BB (stable outlook)
Short-term rating	S2