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12.04.2006
"uaA-"credit rating assined to Komsomolsk city
Today independent rating agency Credit-Rating announced the granting of a long-term uaA- credit rating according to Ukrainian national scale to town of Komsomolsk. The ratings forecast is stable. Credit rating has been assigned to Komsomolsk for the first time.
Factors supporting the credit rating's level:
- Total growth of budget revenues excluding transfers during 2001-2005 from UAH 22.6 million to 68.2 million;
- The town had no debt obligations as of 04.06.2006;
- The town has on its territory OJSC Poltavskiy mining-and-processing integrated works that takes 11th place among the world largest producers of iron-ore pellets and is among the enterprises of strategic value for economy and safety of Ukraine and the local economic mainstay;
- Growth of main showings of the towns economic development during 2001-2005 (industrial production output increased by 3.2 times to UAH 2.3 billion; fixed assets formation by 4.4 times to UAH 325.0 million; foreign investments by 107 times to USD 85.6 million; retail turnover of goods by 2.4 times to UAH 52.7 million, from 2001 till 2004 foreign trade turnover of goods grew 1.8 times to USD 296.5 million);
- Basic showings of social development improved: unemployment level decreased from 0.67% in 2001 to 0.28% in 2005 (average in Ukraine in 2005 3.2%), salaries grew from UAH 506.5 in 2001to 1190.1 in 2005 (average in Ukraine in 2005 UAH 806.19), arrears in wages decreased from UAH 174.8 thousand in 2002 to UAH 42.4 thousand;
- rich working experience of the town mayors (12 years) and most of the town administration which enhances realization of strategic plan of town development, introduction of quality management system for local government bodies on the basis of international standard ISO 9001:2000;
- economically active people prevailing in the towns age structure 71.4%.
Factors restricting the credit rating's level:
- one-profile economy: high dependence ob the operation of OJSC OJSC Poltavskiy mining-and-processing integrated works providing about 60% of returns to the town budget excluding transfers;
- insufficient income flexibility, budget revenues depending on changes in interbudget relation system and tax rates established by the state;
- low diversification of the towns budget incomes: individual income tax makes up over 50% of returns to the budget excluding transfers;
- low development of the towns transportation complex (automobile transportation is represented by economic entities registered in Kremenchug);
- polluted environment mainly owing to activity of OJSC Poltavskiy mining-and-processing integrated works;
For more detailed information, please contact
us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
