2. May 2019.
Moody's Public Sector Europe ("MPSE" or "Moody's") has changed the outlook of the City of Zagreb and its 100%-owned utility company, Zagrebacki Holding D.O.O. (Zagrebacki Holding or Holding), to positive from stable. At the same time, Moody's has affirmed the Ba2 long-term issuer ratings of both entities.
Moody's rating action on the City of Zagreb reflects (1) the improvement in the operating environment for Croatian sub-sovereigns, as captured in the rating action on the sovereign bond rating; and (2) the city's good budgetary management and sound financial fundamentals, which have ensured a high self-funding capacity and a low direct debt burden.