Blog » Credit Ratings Corner: A place to discuss credit ratings and municipal creditworthiness

Credit Ratings Corner: A place to discuss credit ratings and municipal creditworthiness

Created Apr 05 2016, 3:12 PM by John Iwan Probyn

Greetings Community Members and welcome to our discussion on credit ratings for sub-sovereign entities!


It is well known that a key tool in developing and showcasing good financial management practices is to obtain a credit rating from a respected rating agency. 


In order to shed some light on credit ratings for sub sovereign entities I have the pleasure to presenting Fernando Mayorga of Fitch Ratings answer your questions on sub-sovereign finance in developing countries:


A Brief Introduction of Fernando Mayorga:

Fernando is the global head of the International Public Finance group at Fitch Ratings. His team rates local and regional governments as well as public sector entities, including social housing, public transportation, universities, and health care providers outside of the US. Previously he was also CEO of the Spanish offices for Fitch Ratings.


Prior to joining Fitch in 1993, Fernando worked in Banco Exterior de España in London, where he was responsible for the credit analysis of the bank’s U.K. and Latin American corporate exposure. Fernando has an MSc in Financial Economics from the University of London and a BA (Hons.) in Modern European Studies from West London University. He also holds a postgraduate diploma in banking from Guildhall University and was an associate member of the Chartered Institute of Bankers in the U.K. Fernando is currently based in Barcelona.

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    This is a question for all:

    We see a range of impacts from global climate change around the world.  Do your ratings take into account long-range environmental risks?

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    Hello to all,


    Looking forward to upcoming Creditworthiness Academy, which could possibly be the largest international platform ever on municipal finance participated by very large number of local governments in Turkey.

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  • See you soon Liz!


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    Welcome Fernando to our discussion and thank you for taking the time to share your knowledge with our global Community of Practice members. 


    I’d like to get started with a more general discussion on the experience of your firms in working on sub-sovereign finance and credit ratings before moving on to some specifics of the ratings process itself.  Please go ahead and tackle one or more of the following initial questions:


    • In which countries outside the EU and United States has your firm worked on sub-sovereign credit ratings? 


    • Does your firm have a particular regional/subject area of expertise? 


    • What are some of the trends you see in sub-sovereign finance in the countries in which you work?


    • What do you anticipate in regard to sub-sovereign finance in these countries in short to medium term?
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  • Attaching a great presentation by Türda Özmen on credit ratings delivered at the recent City Creditworthiness Academy in Turkey. It summarizes key steps and drivers for a successful rating process.


    Screen Shot 2016-04-23 at 12.50.07 PM.pngScreen Shot 2016-04-23 at 12.50.54 PM.png

    Full presentation: Day 1, 15.45, Demonstrating Sound Financial Mgmt, (Joshua&Turda) FINAL.pptx - Box

  • Very interesting research by John Iwan Probyn on credit ratings around the emerging world: How many of the Developing World's top 500 cities are creditworthy?  New original research

  • Freshly released second edition of UNHABITAT's Finance for City Leaders (LINK), including a chapter on municipal creditworthiness. Many authors are members of our online community!