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18.07.2007
Rating to the city of Komsomolsk affirmed at uaA-
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today affirmed at uaA- (uaA minus) the long-term credit rating assigned to the city of Komsomolsk (City). The agency has also affirmed at uaA the long-term credit rating to UAH8m 3-year Komsomolsk City Council's debt issue. Outlooks on both ratings are Stable. To affirm the ratings Credit-Rating considered City's key social and economic development indicators for 2006 as well as other inside information furnished by the city council.
A credit rating of uaA is an investment grade rating, indicating a STRONG CAPACITY to pay both interest and principal on the given debt liability in the Ukrainian financial market environment. This rating indicates a level of creditworthiness that is more susceptible to adverse changes in commercial, financial and economic conditions than debt obligations with uaAAA and uaAA ratings. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating:
- City's social development indicators have retained over 2006, in fact the weighted average salary in the City 25.7% exceeds that average of the country with null in its arrears being retained. The official unemployment rate of 0.37% remains one of the lowest in Ukraine;
- The City's 2006 key figures of economic development remain high. Calculated per capita, these indicators exceed those averages of the country, namely of industrial production 4.6x, of investments into fixed capital 2.6x, of foreign investments 4x;
- Modest City budget's direct debt of 11.2% excluding transfers as of Jan.1, 2007;
- The volume of investments in renovation of fixed assets, including residential premises and utility and transport infrastructure remains lower than in majority of Ukrainian cities.
Factors constraining the credit rating:
- City's economy remains single-oriented; in fact the City is dependant upon Poltava Mining and Processing Enterprise OJSC (Poltava GOK) performance, with the City budget having gained 70% of its revenues from the individuals tax and from land fee.
Information on all the credit ratings assigned in accordance with the Ukrainian National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR Information Systems.
For further information, please contact:
Information and Analytic Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
