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05.07.2006
Credit rating of the Odessa city upgraded to uaBBB-
Today independent rating agency Credit-Rating announced the upgrade of the long-term credit rating to Odesa from uaBB to uaBBB- .
Factors supporting the credit rating's level:
- Improved situation with optimization of debt structure and service of the citys debts;
- Growing revenues of the city budget (excluding transfers) in 2005 compared to 2004 by 23.3% to UAH 760.3 million;
- Persisting positive development trend in 2005 in the labor market: average number of regular employees (excluding small businesses) grew 3.2% compared to 2004, level of official unemployment remained one of the lowest in Ukraine and equal to 0.3%, average wages grew 31.5% year-over-year to UAH 860.58;
- Improving economical performance in 2005: volume of sold products (works, services) of basic kinds of industrial activity in producers selling prices was 172.1% of sales volumes in 2004, total foreign investments grew 15.1% compared to 2004, foreign trade turnover increased 24.7%, volume of retail turnover of goods was 141% of 2004 level;
- Further development of small businesses in 2005: number of companies grew 7.2% year-over-year, volume of goods (services) produced grew 94%, receipts from single tax grew 29.1%;
- land sales by auction in 2005 increased revenues of development budget (returns from land sales in 2005 were UAH 85.3 million, compared to UAH 19.2 million in 2004).
Factors restricting the credit rating's level:
- A rather high debt burden on the city budget;
- Expenditure part of budget general fund was performed 90.3% of the plan including changes in fulfillment of plan for general fund revenues by 90.7%, expenditures of budget special fund were performed 79.4% while the plan for revenues was fulfilled 103.4%;
- Growth of arrears in wages by 11% to UAH 7.0 million;
- 24.6% decrease of investments in fixed-capital assets in 2005 year-over-year;
- Further reduction of the city population (reduction was 0.5% of total population in 2005).
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
