Fitch rates ZKM Gdansk bond BBB

Fitch Ratings said it assigned Zaklad Komunikacji Miejskiej w Gdansku Sp. zoo's (ZKM Gdansk) 49.44 million in Polish zloty revenue bond issue, due Dec. 30, 2024, a final long-term local-currency rating of BBB and national long-term rating of A+(pol). The floating interest revenue bonds have been issued under a 220 million in Polish zloty tram revenue bond program. The interest coupons on the issue will be paid semi-annually.

ZKM Gdansk is 100%-owned by the city of Gdansk, which has a BBB+ rating and stable view, and is classified as a dependant entity of the Polish city due to its close links to Gdansk.

The ratings are based on predictable and regular payments from the city to the venture account dedicated to bond servicing and supporting the long-term contracts for bus and tram transport services, which expire after the bonds, 2016 and 2030, respectively, Fitch said.

The ratings also factor in the support agreements between the issuer, the city and the administrator, Bank Pekao, which include additional provisions to the tram revenue bond program and to ZKM Gdansk, the agency said.

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