OREANDA-NEWS. October 30, 2009. The international rating agency Moody's has affirmed the credit rating of the City of Tallinn at the previous level.

"I don't know of any other city in the Baltic region whose rating remained at the previous level. Ratings of all the three Baltic states too have been downgraded," Mayor Edgar Savisaar observed.

The rating action reflects the overall economic environment, functioning of the government sector, the city's operating environment, financial position and loan burden, and management.

In the agency's view, the strengths of the city lie in prudent fiscal management, moderate direct loan burden and solid liquidity position, the city government said.

As a sign of threat, the report at the same time points out that the liquidity of the city has been fluctuating during 2009 and ensuring liquidity next year could be complicated.

In the agency's view, the greatest challenge is the negative impact on the city's income base of the sharp contraction of the national economy.