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12.10.2006
The city of Nikolayev assigned uaBBB credit rating
The independent "Credit Rating" agency has today announced the assignment of uaBBB long-term credit rating (in accordance with the National Rating scale) to the city of Nikolayev. The Outlook is Stable. The credit rating of the city council is based upon analysis of the city's social and economic development for 2002-2005 and 1st half 2006, as well as upon other information furnished by the Executive Committee of the City Council.
Factors supporting the credit rating level:
- improvement of main indices reflecting the city's economic development over 2002-2005, namely the growth in industrial production, in investment into the stock capital, of foreign trade and of commodity turnover. The mentioned indices exceed the 2005 average country's indices per capita.
- improvement in particular indices of the city's social and economic development over 2002-2005 and 1st half 2006, namely the decrease in unemployment level and growth of monthly average salary.
- a comparatively low level of the city's plain duty.
Factors restricting the credit rating level:
- poor indices of the 2004 budget fulfillment as compared to 2003; decrease in the budget revenues by 11.2%, entailed by a significant decrease in tax payments after putting in force the "Taxation of Individual Person" law, nonfulfillment of the pool's specified rates, which resulted in decrease of the cash turnover size and of the budget fund remains as of 1 Jan. 2005 and in need of the non-interest mid-term loans attraction in 2004-2005, and of the short-term loans attraction to cover temporal cash shortages in 2005.
- the dependence of the city's budget revenues upon payments of the individual person's tax (the citys revenues share of this source is ca.60% excluding transfers), in line with the low growth rates of the average salary during all the period analyzed, as compared to the growth of the similar country's index and increase in salary payments' indebtedness.
- low growth rates of the direct foreign investments size over 2002-2005 and 1st half 2006.
- comparatively low volume of residential premises set in operation.
The information on all the credit ratings assigned in accordance with the Ukrainian national scale can be found in the REUTERS and BLOOMBERG information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
