Moody's has changed outlooks to positive and affirmed Baa2 ratings of the City of Zagreb and Zagrebacki Holding d.o.o., the city administration reported on Monday.

The change of the outlook from stable to positive came after on 10 November, this rating agency affirmed Croatia’s Baa2 credit rating and changed the outlook to positive.

Thus the credit ratings of the capital city and its multiutility company are at the same level as Croatia’s rating.

The agency points to prospects for a macro-economic growth, which are expected to strengthen the capital city’s financial results and contribute to the reduction of its debt in the next few years, according to a press release from the city administration.

Moody’s cites low environmental, social and management risks for Zagreb due to the successful governance of the city.

Concerning environmental protection, the agency points out a successful flood protection system, and also calls for the reconstruction of water supply and sewage infrastructure.

The city’s low social risk is due to a strong demographic profile, highest average wages and the lowest unemployment rates in Croatia, the city administration quoted the agency as saying.

According to Moody’s, the city’s low management risks stem from the good governance of the city and strong institutions.

Mayor Tomislav Tomasevic was quoted as saying that the credit rating has an important role in the ability of the city to upgrade its services and urban infrastructure, explaining that the higher credit rating means cheaper access to money and higher investor interest.

This is the sixth upward revision of Zagreb’s credit rating or its outlook by international agencies during the term of the current administration, and Mayor Tomasevic (Mozemo! party) said that this is “the best confirmation of the success of our management of the City of Zagreb.”