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Local governments



Local governments set the overall direction for their municipalities through long-term planning. Examples include council plans, financial plans, municipal strategic statements and other strategic plans. Setting the vision, and then ensuring that it is achieved, is one of the most important roles of local government.

An ever-increasing number of tasks transferred to local government units and modest financial resources available to local governments, necessitate the use of external sources of financing. They allow the execution of tasks especially on investment.

Fundraising is associated with the local governments units being as the demand side of the financial market. Investors, representing the supply side, are interested in a safe investing of their funds. In this connection, it is necessary to test the ability of local governments to settle its liabilities, including interest, that is widely understood as the creditworthiness.

  

The Polish Institute of Credit Management took a challenge of assessing the creditworthiness of polish local governments thru setting up a rating system according to the own methodology. The attached document describes the creditworthiness assessment process and rating drivers of PICM approach. We value the credit rating based on the following criteria:

 

 

In PICM methodology we emphasize the diagnosis of specific risk, non-systematic, related only to certain local government. The less attention is focus on systematic risk, related to external factors, like political and economic system.


Expert credit ratings are expensive and not really available for many local governments in Poland. Public finances play more and more important role in the Polish economy, and their transparency is very important for health of the financial markets. The creditworthiness analysis of local governments offered by the Polish Institute of Credit Management provides the comprehensive service. We look not only on the debt and GDP level, but give the full picture of the local economy and quality of the economic fundamentals.

For the moment the methodology and all analysis are available only in Polish language. Please write us at picm@picm.pl if you are interested in having our analysis in english.

 

The table below shows the current ratings given to the local governments in Poland.

 

VOIVODESHIPS in POLAND

voivodeship location  RATING August 2015 RATING September 2016
ZACHODNIOPOMORSKIE BBB BBB
ŁÓDZKIE   BBB+ BBB+ 
MAZOWIECKIE  AA AA 
MAŁOPOLSKIE  A+ A
ŚLĄSKIE  BBB
LUBELSKIE  BB+ BB
PODKARPACKIE  BB+ BB+ 
PODLASKIE  BB+ BB+ 
ŚWIETOKRZYSKIE  BB+ BBB
LUBUSKIE  BBB BB+
WIELKOPOLSKIE  AA A+
DOLNOSLĄSKIE  BBB+ A+
OPOLSKIE  BB+ BB
KUJAWSKO-POMORSKIE  BBB BB+
POMORSKIE  A A
WARMIŃSKO-MAZURSKIE  BBB BB+

 

CAPITAL CITIES of the VOIVODESHIPS in POLAND

city  location RATING august 2015
BIAŁYSTOK BBB
BYDGOSZCZ   BBB+
GDAŃSK  A+
GORZÓW WIELKOPOLSKI  BBB
KATOWICE  A+
KIELCE  BBB
KRAKÓW  A+
LUBLIN  BBB
ŁÓDŹ  BBB+
OLSZTYN  BBB+
OPOLE  BBB
POZNAŃ  A+
RZESZÓW BBB
SZCZECIN  A
TORUŃ  BBB+
WARSZAWA  A+
WROCŁAW A+
ZIELONA GÓRA   BB+

 

OTHER LOCAL GOVERNMENTS

city  location RATING august 2015
BRZESKO BBB
CZĘSTOCHOWA   BBB
GLIWICE A+
WADOWICE BBB+
GORLICE BBB