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23.05.2006
"uaBB+" credit rating assined to Kamenets-Podolskiy city
Kyiv (Credit-Rating), May 23, 2006. Today independent rating agency Credit-Rating announced the granting of a long-term uaBB+ to the town of Kamenets-Podolskiy. Credit rating to Kamenets-Podolskiy has been assigned for the first time. In the analysis process the rating agency used economic and financial performance information of the town for 2001-2005, the town budget for 2006, as well as inside information provided by executive committee of the town council.
Factors supporting the credit rating's level:
- Growth of budget revenues excluding transfers in 2001-2005 from UAH 18.4 million to 50.2 million;
- Lack of the towns direct debt obligations as of 04.01.2006;
- Growth of most indices of the towns economic development in 2001-2005, in particular capital investments grew by 5.1 times to UAH 149.1 million, foreign investments by 2.1 times to USD 7.8 million, retail turnover of goods by 2.7 times to UAH 176.0 million, though practically all indices of economic development per capita in 2005 was lower than average in Ukraine;
- Improved main showings of social development in 2001-2005: decrease of unemployment level from 5.21% to 3.08% (average in Ukraine in 2005 3.2%), decrease of arrears in salaries from UAH 3.6 million to 1.8 million in 2005;
- Development of small business: over the past 5 years the number of legal entities in small business grew 12%, individuals 37.8%;
- Considerable development potential of the towns tourist industry;
- Economically active people prevailing in the towns age structure 73.6%;
- Sufficient working experience in the office (8 years) of the town majors and most leaders, which enhances realization of the town development strategy plan.
Factors restricting the credit rating's level:
- Insufficient flexibility of incomes, the budget revenues depending on changes in system of interbudget relations and tax rates determined on the state level;
- The town budget depending on transfers from State budget (in 2005 ratio of transfers to total budget revenues was 47.1%, in 2006 this ratio is expected at the level of 52.7%);
- Average monthly salary in the town was in 2002-2005 less than average in Ukraine as of 01.01.2006 and was UAH 581.03 or 72.1% of Ukrainian level;
- Decrease of average number of workers during 2001-2005 (excluding small businesses) by 19.2%, small share of employed (including small businesses 46.8% in 2005) among the total number of able-bodied people;
- Housing and utilities need reconditioning.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
