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14.07.2006
Credit rating of Donetsk city upgraded to uaA-
Today independent rating agency Credit-Rating announced the upgrade of the long-term credit rating to Donetsk from uaBBB+ to uaA-.
Factors supporting the credit rating's level:
- growth of the budget revenues by 31.5% in 2005 against the previous budget period, 104.2% plan fulfillment in revenues;
- basic social development showings improved: wages raised by 38.5% to UAH 1 007.53 in 2005, which is 25% above the average in the country, reduced arrears in wages by 19.6%, unemployment dropped from 0.85% to 0.66%, which is 4.8 times less than the unemployment level in Ukraine;
- certain indices of the citys economic development grew in 2005 year-over-year: volume of investments in the fixed capital increased 29.2% (investments per capita exceeded the average in the country by 54.9%); volume of retail turnover of goods in the trade network increased 31.8%; volume of paid services sold to the population - by 29.3% (turnover of goods per capita exceeded 2 times the average in Ukraine);
- large amounts of clear balance of general budget funds (UAH 27.3 million as of 01.01.2005, or 3.3% of actual administration of the general budget fund expenditures in 2005 and UAH 39.5 million as of 01.01.2006, or 4.4% of the revised plan of the general budget fund expenditures for 2006), consequently no loans were received to cover temporary cash gaps in 2005 and 1 st quarter 2006.
Factors restricting the credit rating's level:
- reduction of production volumes and sales of industrial products in such industries as metallurgy and metal works, production of coke and petroleum derivatives;
- decrease of export volume by 28.5% in 2005, which resulted in external trade turnover of goods dropping 19.2%; low growth rates of direct foreign investments (in 2005 the growth was 6.7%);
- high level of peoples debt for housing and utility services;
- rather low volumes of accommodation put into operation (109.9 sq. m. were put into operation per 1 000 people in 2005, which is 34.0% lower than the average in Ukraine).
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
