Town Český Krumlov rating

Rating agency Czech Rating Agency, a. s., (CRA) finished the rating of town Český Krumlov and awarded it:

long term international rating   Baa
long term local ratingACR
prospectstable
short time ratingPrime-2
Town Český Krumlov

We select from rating glossary :

"We appraised the current situation of town Český Krumlov, its expected future development and total long term ability to discharge fully and in given terms its obligation. After judging a development of tax incomes and indebtedness, positive economic potencial of town, (chiefly in traveling), and need of investments into the town infrastructure along with using other foreign sources, the Czech Rating Agency, a. s. dedicates to town Český Krumlov long term CRA Rating at level Baa /ACR. "

"We measured past and present management of the town Český Krumlov and we find it stable. Town budget was composed based on financial possibilities with great use of foreign sources, but ready to discharge fully and in given terms its financial obligations. After appraising the presupposed short term development and according to its financial means and to present debt of town dedicates the Czech Rating Agency, a. s. to town Český Krumlov a short term CRA Rating at level Prime-2."

Areal view of Český Krumlov, foto: Lubor Mrázek

Town Český Krumlov is already the 18th town which obtained rating from the Czech Rating Agency, a.s. To the town was given a long term international rating at level Baa, what is just one grade below rating of the Czech Republic. Simultaneously was Český Krumlov appraised by long term local rating at level ACR and by short term rating at level Prime-2.

Český Krumlov is an administration center of the borderland with population of 15 000 inhabitants. It is located in the Southest point of Czech Republic. The transportation infrastructure of the town and its connections to other regions is fair. Weaker is transportation situation in the region. To the most important routes in region Český Krumlov belong the 1st class road No. 3, to which is town connected by the 2nd class road No. 159. The railroad which runs through town enables connection to the main railway Praha - Linec in České Budějovice. The closest international airport is in Austrian Linc, on the Czech territory it is in Praha.

Character of town Český Krumlov as protected area (according to its natural conditions and relics) determines agricultural aims of the region. To the most important branches belong wood working, paper making industry and tourism. The most important company in town is Lira, frames and laths, a.s. [CRA Rating: Baa+ /ACR /Prime-2]. Although it is rather medium size company (about 300 employees), its advantage is stable position on market and great part of export. Part of population finds job at the South Bohemia paper making factory, a.s. Větřní. High frequency of tourism enables absorption of working powers in tertial sector, mainly in accommodation and catering services. At the end of 1999 the unemployment in region reached 10,18%.

After being introduced to management of town Český Krumlov since 1995 it must be (according to CRA opinion) said, that no serious problems appear in it. Town follows its long term development strategy. Due to historic center of town from 1990 needful investments into the infrastructure had to be paid. These spendings claimed raising of foreign means income into town budget. Today has town paid great part of its debts, total debt service is 12,5 mil. Kč. Total incomes of budget are at level from 185 to 357 mil. Kč. Almost 40% of total incomes are the tax incomes, which shall according to CRA exceed 115 mil. Kč in 2000. The important source of incomes are those from possession sales. Investment spendings amounts about 15 - 20% of total spendings. Main role in investing into a historic center plays Český Krumlov development fund, which is owned by town. Town investments will be in next years designated mainly into infrastructure reconstruction and into the flat fund. According to CRA the town Český Krumlov will in future be able to discharge fully and in given terms its obligations.

Analytics: Martina Hábová, Marian Klásek

Detailed information about town Český Krumlov rating are published in systems REUTERS on pages CZRA or in systems Albertina, Newton I.T. or ČEKIA agency and as well on the internet address www.czechrating.cz.

If you are interested in the whole version of CRA rating report , or if you have any further questions, please contact Mrs.: Michaelu Čarneckou, CRA commercial section, tel. 02-24235161 or Mgr. Aleš Mik, town Český Krumlov secretary, tel. +420 380 766 312.

Press report published in Prague on March 28th 2000 Czech Rating Agency, a. s.

 



© Sdružení Oficiálního informačního systému Český Krumlov, 1999
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