I. STATEMENT ON RATING

Slovak rating agency granted following ratings to City Trnava:

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

The granted long-term rating in the category of transactions in Slovak crowns A- (stable outlook) is at the same level as the rating of the Slovak Republic. In the category of transactions in foreign currencies rating BBB (stable outlook) has been granted to the City Trnava, which is also at the risk level of the Slovak republic. Short-term rating of City Trnava is S2+, which is the best possible short-term rating for the entities attaining long-term rating A-.

Rationale:

Strategic planning continues to be the strength of the City. At the present, the city has developed some strategic documents concerning its long-term development, while the most important ones are: Strategic plan of economic development of the City Trnava, Long-term investment plan of the city Trnava, Land use planning of the city Trnava, Program of waste management until 2005. Strategic targets of the city development are based on the election program developed for the time period between 2003-2006 are solving three main living areas of the city: city attraction, economy and employment development and education, health and social care. Strategic documents have been elaborated in cooperation with the business sphere and the third sector.
Financial situation of the city is positive. In 2002, the city economy has been closed with surplus of SKK 13,607 million and indebtedness indicator achieved positive values. We see positively the fact that the share of credits drawn under favoured conditions as of ultimo of 2002 made 37 % of total bank credits. 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 4,35 % as of ultimo of 2002 (in accordance with the law the maximum value is specified at 25 %) and indebtedness-to-current-revenues ratio reached the value of 20,41 % as of ultimo of 2002 (in accordance with the law the maximum value is specified at 60 %).
We see positively not only the management processes of the city, but also management of its non-financial organizations. Economy results of non-financial organisations reached the value of SKK 9 971 thousand in 2002 and the result of budget management of the city represented the value of SKK 23 578 thousand.
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	A- (stable outlook)
Long-term foreign currency rating	BBB (stable outlook)
Short-term rating	S2+