In the North American school system students seeking to be the best strive for an ‘A’ grade. However, the school system is not the end of the drive to be the best and earn an ‘A’ grade. Letter grades are used by rating agencies to rank communities in terms of investment risk.
Ostrava, in recent times, received an ‘A3’ grade from Moody’s Investors Service.
What does this mean to you as a potential investor? What are the other indicators which would point to the health and prospects of Ostrava’s property market?
What does this rating actually mean?
There are 25 rankings from Moodys in the investor services, an ‘A3’ is seventh from the top and is defined as an upper-medium grade. A similar grading company, Standard and Poors, also gave Ostrava an ‘A’ ranking based on their grading system.
What will that mean for the city?
Some investors will only look at cities with ‘A’ ratings. It is an indicator of the financial and fiscal health of the community.
Since the restructuring of the industry in the 1990s, the economic platform of the city has changed substantially. In fact, most of its incomes are no longer dependent on local economic conditions.
Ostrava, in receiving this rating, achieved the identical level of rating as other mid-sized cities in Central Europe. Brno, for example, also received an ‘A3’ rating (for a complete discussion of Brno property and economic developments visit our feature on Brno property.)
Let’s go through some other indicators as to the investment potential for this Northern Moravian city.
Area: 214 km2
Population (latest data April, 2004): 315 000
Road Distance from important European and Czech cities:
City / kms
Brno / 170
Olomouc / 93
Prague / 360
Vienna / 310
Bratislava / 300
Warsaw / 300
Budapest / 389
Berlin / 540
Paris / 1 500
With the completion of the D-47 highway the infrastructure capacity will greatly increase as well as the ease of travel. Travel time to the Czech capital, Prague, will be shortened to a little over three hours.
Ostrava – Mosnov International Airport is located 25 km from the city centre. It is the biggest regional airport in the Czech Republic with a capacity of more than one million passengers per year (current actual figures are just over 200 000 per year and expected to triple next year) and a runway 3500m in length and 63m wide, allowing it to accommodate the world’s largest airplanes. Currently it caters to both domestic and international flights.
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