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16.10.2007
Credit-Rating rates city of Simferopol at uaA
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned the city of Simferopol (Autonomous Republic of Crimea) and its UAH20m 5-year debt a long-term credit rating of uaA. The outlooks on both ratings are stable. In the course of analysis Credit-Rating considered City`s key figures for 2002-2006 and 1H2007 as well as other inside information furnished by the city council.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.
`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 key performance indicators have grown in 2002-2006, namely the export goods turnover, foreign direct investments, investments into fixed capital, retail turnover, and homes delivered.
- City`s social development indicators have grown in 2002-2006, namely the official unemployment rate decreased to 0.7 per cent in 2006, which is 3.9x lower than that average of the country; the weighted average salary grew to UAH1.1K in 2006, which is 8.9 per cent higher than that average of the country.
- The City Council does not have a direct debt as of Jan. 1, 2007 accompanied by its moderate growth in 2007 at the expense of issue of local loan bonds planned at 5.2 per cent in approved for 2007 budget revenues excluding transfers.
- The city budget is funded sufficiently, which results in city`s annual transferring surplus funds to the State budget.
Factors constraining the credit rating
- The city did not fulfil plan on 2006 gains, which resulted in budget debt as of Jan. 1, 2007 then paid in 1H2007.
- City`s certain 2006 per capita indicators are lower than those average of the country, namely industrial production sales and foreign direct investments.
- High deterioration of main funds, including homes and infrastructure, which requires significant investments for their renovation.
Information on all 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
