print
03.07.2006
Credit-Rating changed the forecast of bond issues by Zaporozhye city administration
Today independent rating agency Credit-Rating announced the confirmation of the long-term uaA- credit rating to the municipal bond issue by Zaporizhya in the amount of UAH 25 million with a circulation period of 3 years. The rating forecast is changed from negative to stable . Also Credit-Rating agency announced the confirmation of the long-term uaBBB+ credit rating to the municipal bond issue by Zaporizhya in the amount of UAH 75 million with a circulation period of 5 years. The rating forecast is changed for positive .
Factors supporting the credit rating's level:
- A year-over-year growth of economical development showings in 2005: volumes of industrial production output grew 4.8%, volume of investments in the fixed-capital assets 18.4%; foreign trade turnover of goods increased 19.5%, volume of retail turnover of goods of trade network grew 45.9% to UAH 2 683.9 million (turnover of goods per capita was UAH 3 381.5, which is 72.7% higher than the average in the country);
- Persisting stable situation in the labor market due to low unemployment level, which dropped since the year start from 0.84% to 0.8%, 4 times less than the average in Ukraine: growth of the average monthly wages of a staff worker by 26.1% to UAH 965.52 in 2005, which is 19.8% higher than the same index in the country;
- Total receipts to the city budget increased by 38.7% excluding transfers and funds transferred from the general fund into the special year-over-year, and 2005 plan fulfillment of revenue in the general fund by 100.9%, the special fund by 108.4%.
Factors restricting the credit rating's level:
- unfulfilled fixed revenues of the general fund of budget by 1.2% to the 2005 plan;
- increased volume of direct debt from UAH 47.4 million to 100.6 million and consequently of direct debt burden on Zaporizhya city budget up to 15.8%, compared to 9.4% in 2004;
- 38.8% growth (by UAH 2 463.0 thousand) of arrears in wages and considerable debt of citizens for housing and utility services.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
