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27.11.2007
Credit-Rating: Brovary city`s rating upgraded to uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today upgraded to uaBBB from uaBBB- (uaBBB minus) the long-term credit rating assigned to the city of Brovary (`City`). The outlook on the rating is stable. To revise the rating Credit-Rating considered City`s financial, social and economic indicators for 1H2007 as well as other inside information furnished by the city council.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by 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
- The City budget`s revenues excluding transfers grew 2.6x in 1H2007 as compared to the year-earlier period accompanied by high fulfillment of the plan on annual revenues excluding transfers.
- The City`s key figures rose in 1H2007 as compared to 1H2006, namely investments in fixed capital, direct foreign investments, homes delivered, retail trade.
- Positive trend in City`s labour market development during 1H2007, in fact growth in monthly salary and low unemployment rates.
- The city council does not have a direct debt as of Jul.1, 2007.
Factors constraining the credit rating
- Up to 30 per cent of the City`s labour force outflow to the city of Kiev, which cuts down budget gains from individuals` tax accompanied by retained burden on budget expenditures.
- The volume of the per capita industrial production sales is 2.3x lower than that Ukraine`s average.
- High deterioration of city`s main funds, including the housing sector and city`s engineering and transport infrastructure, which requires significant investment for their renovation.
Information on all credit ratings assigned in accordance with the National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
