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05.11.2007
Credit-Rating rates city of Illichevsk at uaA
Credit-Rating, a nationally recognized credit agency in Ukraine has today assigned a long-term credit rating of uaA/Stable outlook to the city of Illichevsk (`City`) in Odessa Oblast. In the course of analysis Credit-Rating considered City`s social and economic, and financial indicators 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 high economic development indicators which, calculated per capita, exceed significantly country`s average 2006 figures 4x by industrial production sales, 3x by export goods turnover, 3.2x by investments in fixed capital, by 4.6x by foreign investments, 2.5x by retail turnover, 2.4x by homes delivered. Such tendency is expected to be further retained.
- City`s social development indicators rose in 2002-2006 and 1H2007: the unemployment rate plunged to 0.2 per cent in 1H2007, which is 11.5x lower than that average of the country accompanied by growth in monthly average salary to UAH1,639 in 1H2007 which is 33.8 per cent higher than that average of the country.
- City budget revenues exceed its expenses resulting in City`s annual transferring funds to the State budget, namely 30.3 per cent of the budget revenues in 2006.
- Small volume of city council`s direct debt of 1 per cent of the budget revenues excluding transfers in 1H2007.
- The City has lower necessity in renovation of main funds including homes and infrastructure as compared to majority of the Ukrainian cities, which is to be financed from the municipal budget.
Factors constraining the credit rating
- The City is highly dependant upon performance of Illichevsk commercial seaport and its transport infrastructure, albeit the specific gravity of tax and duties paid by this company to the general budget fund excluding transfers has decreased to 28.1 per cent from 43.7 per cent during 2003-2006 and 1H2007.
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
