print
21.08.2006
uaA- credit rating assigned to upcoming bond issue of Donetsk
Today independent rating agency Credit-Rating announced the granting of a long-term uaA- credit rating to the scheduled bond issue by Donetsk city council in the amount of UAH 50 million with a circulation period of 5 years.
Factors supporting the credit rating’s level:
- Constant growth of budget revenues excluding transfers from UAH 432.1 million in 2002 to UAH 773.2 million in 2005, or by 1.8 times;
- considerable amounts of clear balance of the city budget general fund during 2002-2005 and the first quarter 2006, as a result no funds were borrowed to cover temporary cash gaps (clear balance of general fund was UAH 49.2 million as of 01.04.2006);
- improved social performance of the city over the period under study: increase of the average monthly wages to UAH 1 137.29 in the first quart. 2006, which is 23.9% higher than the average showing in Ukraine; reduction of arrears in wages; reduction of the registered unemployment to 0.7% as of 01.04.2006, which is 4.6 times lower than general unemployment level in Ukraine;
- growth of certain indices that characterize the city’s economic development during 2002-2005: growing investments in fixed capital from UAH 1 257.9 million to 3 065.9 million (in 2005 volume of investments per capita surpassed the average Ukrainian showing by 54.9%); growing retail turnover of goods in trade network (2005 turnover of goods per capita was 2 times higher than the average in Ukraine).
Factors restricting the credit rating’s level:
- decreasing volumes of industrial production and sales in 2005 and the 1st quarter 2006 in such industries as metallurgy and metal treatment, coke and petrochemical production;
- 28.5% drop of export volumes in 2005 which reduced external trade turnover of goods of Donetsk by 19.2%.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
