Development Management

Creditworthiness assessment of municipalities in Ukraine

In the article modern methodological approaches to the assessment of the creditworthiness of local authorities was analyzed, group of indicators used by rating to assessing the creditworthiness of local governments was presented. The author was proposed a methodological approach to assessing the creditworthiness of local authorities based on the using of factor analysis and took into account indicators that characterize the financial and debt sustainability of the local budget. The application of the proposed methodological approach will allow potential investors of local authorities to assess the level of risk of comparable city with a view to making a decision on investing in their local bonds; local authorities-borrowers - to conduct a diagnosis of their creditworthiness in any reporting period

creditworthiness, creditworthiness assessment, local government, credit rating