The region's rating

The region’s international rating by Moody’s Investors Service is A1 with a negative outlook.

The rating is an independent evaluation of the subject’s ability and will to fulfil future commitments, which is important particularly for rating the client’s creditworthiness when procuring external resources.

The awarded rating also fulfils the obligations stipulated by the credit agreement, which the region has concluded with the European Investment Bank.

Based on a regular yearly re-assessment of the region’s international rating, which took place this April, the agency issued an updated analysis on 9 May 2023, based on which the Moravian-Silesian Region retained its A1 rating with a negative outlook.

The continued conservative style of managing the region’s finances, in particular the maintenance of low regional debt, continued good operating results and high cash reserves, influences the retention of the A1 rating.

The lasting negative outlook on the region’s credit rating reflects the negative outlook on the Czech Republic’s rating and the close links between the region’s financial performance and the performance of the national economy. The region’s credit profile is limited by the extensive investment plan and heavy reliance on transfers from the central government.

The Moody’s Investors Service rating agency has been awarding international ratings to the Moravian-Silesian Region since 2005. In this period, the rating has gradually improved from A3 to the current A1.

The Moravian-Silesian Region thus has the highest possible credit rating in the currently defined model for financing of regions in the Czech Republic.

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