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02.11.2006
The uaA- (uaA minus) Komsomolsk city’s credit rating affirmed
The independent “Credit-Rating” agency has today affirmed the uaA- (uaA minus) long-term credit rating assigned to the city of Komsomolsk. The Outlook is Stable. During the rating revision procedure the “Credit-Rating” agency considered 1H 2006 indices of the city’s socio-economical development, as well as other inside information furnished by the Executive Committee of City Council
The uaA long-term credit rating reflects the strong capacity of the City Council to meet its commitments on the obligation in the Ukrainian financial market environment, it may, though, be more vulnerable to the adverse changes in business, financial and economic conditions than issuers rated uaAAA and uaAA. “Minus” denotes relative rating’s status within major categories.
Factors supporting the credit rating
- The fulfillment of the 1H 2006 planned indices of budget revenues by 100.8%, namely
on the local incomes by 101.4%, on own incomes by 103.8%
- Improvement in social development indices for the period Jan.-Jun. 2006. The average
month salary grew by 7.4% up to UAH 1,278.1 (the average country index is UAH 967.0), the
unemployment level lowered by 0.02 percentage point to 0.26% (the average country index
is 3.2%), with no salary indebtedness
- Keeping a high level of economic development indices according to the 1H 2006 totals.
The per capita indices over 4x exceed the average country index for the period analyzed,
in fact the per capita volume of the industrial production sales is UAH 21.1 thousand, of
investment into fixed capital is UAH 3.5 thousand, of the foreign investment is USD 1.8
thousand.
- Satisfactory debt size of the Komsomolsk City Council as of 1 Sep.2006
Factors constraining the credit rating
- Preserving of the single-vector character of the city’s economy, in fact a
significant city’s dependency on the OJSC “Poltava GOK”, which covered ca.75% 1H 2006
city budget incomes with tax on individuals and with the ground rent
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can also 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
