MOODY'S RATING CHANGES OUTLOOKS TO POSITIVE FOR NOVI SAD

One of the three most influential credit risk assessment agencies on the world financial market, "Moody's Investors Service", decided to improve the issuer rating of the City of Novi Sad to Ba2 "positive outlook" compared to the issuer rating Ba2 "stable outlook", which was assigned to the City of Novi Sad on August 23, 2023.

The issuer rating includes not only the letter designations but also an "outlook" that describes how the rating might develop in the future. A "positive outlook" indicates that the rating of the City of Novi Sad is expected to rise in the future, while a "stable outlook" indicates that the rating is expected to stay the same in the upcoming period.

- Novi Sad's issuer outlook improved, per the Agency's report, which is a fantastic accomplishment for our City. It is undoubtedly a reflection of the work that the City government has done thus far as well as all that has improved in the City over the course of the last 12 years, not just in the last year. Recently, the "Moody's" Agency upgraded Serbia's credit rating prospects from stable to positive. I'd like to congratulate my colleagues on the City of Belgrade's confirmation of the rating as well. Our cities' acknowledgement indicates their substantial contribution to the economic performance of the country. Together, we are guided by politics, messages and we are following the path of prosperity that was laid out by the President of the Republic of Serbia, Aleksandar Vučić. We will continue to develop even more strongly, to strengthen our city, for all that is yet to come, for future generations - said Mayor Đurić.

According to the Agency's methodology, which is based on the analysis of macroeconomic and political factors, as well as the internal and external environment, the Ba2 issuer rating reflects prudent and consistent budget management, sound financial discipline, a low level of indebtedness, as well as low debt servicing costs, a simple structure of credit indebtedness , which consists of long-term loans for financing capital projects, high liquidity and the significant role of the City of Novi Sad in the national economy.

Novi Sad, 6th September 2024