RATING REPORT
The Slovak Rating AgencyTM confirms the rating of the Town of Sereď for Slovak koruna, and upgrades the rating for foreign currencies as follows:
| Long-term domestic currency rating | BBB- (stable outlook)
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| Long-term foreign currency rating | BB+ (stable outlook)
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| Short-term rating | S2
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The Town of Sereď was assigned the long-term rating BBB- (stable outlook) for the category of transactions in Slovak koruna. In the category of transactions in foreign currencies the Town of Sereď was assigned the rating of BB+ (stable outlook). The short-term rating of the Town of Sereď is S2, which is the best short-term rating for an entity with a long-term rating of BBB-.
Justification:
- With regard to strategic planning, the town is finishing off changes and appendixes of the Regional Plan, Plan of Economic and Social Development as the basic strategic documents of the town, which among other issues will be the basis for compiling the budget for 2005. The future strategic development of the Town of Sereď will focus on three key areas - the creation of an industrial zone, the development of tourism and development of infrastructure and services.
- The financial management of the town is stable. Similarly to previous periods, the economics to the end of 2003 also ended with a surplus (a surplus of SKK 6,086,000), with the debt gearing of the town attaining favourable values at present and available resources of the town far exceeding the volume of liabilities. As the town is interested in financing part of its investment objectives in 2005 from loans, we recommend applying the principle of their diversification when evaluating offers of banking entities.
- With regard to the quality of the natural environment the agency appreciates the active approach of the town to this issue. The town is preparing building the Collecting court for the separation of communal waste. As part of educational activities in school facilities, the town is endeavouring to influence citizens of younger age groups with the aim of introducing separate waste collection, which would bring about an increased effect in future in the shape of savings in the expenditure of the town's budget.
Please don't hesitate to address your questions to autner@slovakrating.sk, or call +421 2 5464 5151.
Slovak Rating Agency
Bratislava, 28 September 2004