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13.06.2006
uaA credit rating assigned to upcoming bond issue of Komsomolsk city
Kyiv (Credit-Rating), Jun. 13, 2006. Today independent rating agency Credit-Rating announced the granting of a long-term uaA credit rating to the scheduled registered interest-bearing bond issue by Komsomolsk town council.
Factors supporting the credit rating's level:
- General growth of budget revenues excluding transfers in 2001-2005 from UAH 22.6 million to 68.2 million;
- no direct debt obligations by the town as of 06.05.2006;
- the town territory accommodates OJSC Poltavskyy Mining-and-processing Integrated Works, one of the 11 largest world producers of iron-ore pellets, included in the list of enterprises strategically significant for economy and safety of Ukraine and the towns economic mainstay;
- 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;
- 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 (as of 01.01.06 no arrears in wages at the affiliates);
Factors restricting the credit rating's level:
- one-profile economy: high dependence on the operation of OJSC Poltavskyy 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.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
