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11.12.2006
The credit rating assigned to the debt obligation of the city of Ivano-Frankivsk affirmed at uaBBB
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today affirmed the uaBBB long-trem credit rating assigned to the debt obligation by the city of Ivano-Frankivsk for the amount of UAH 5.5m with the 5-year original maturity. The Outlook on the rating is Stable. To revise the rating, the agency took into consideration city`s 1H 2006 social and economic development indicators, as well as other information furnished by the executive committee of the city council.
The uaBBB issue rating reflects ADEQUATE CAPACITY of an obligor to timely and in full pay the given debt liability in the Ukrainian financial market environment , there is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to the debt liabilities with higher ratings.
Factors supporting the credit rating
- The growth in major indicators of city`s economic development over January-July 2006, as compared to the similar period of 2005, specifically the retail turnover grew by 63.9% up to UAH 535.4m, the investments into fixed capital by27.6% up to UAH 157.9m, the foreign investments by 20.0% up to USD 27.0m
- Retention of positive tendencies in labour market development over 1H 2006, in fact the number of employees (excl. small businesses) grew by 6.6%, the weighted average wage grew by 19.9% and amounted to UAH 885.4 as of 1 Jul. 2006, the level of registered unemployment decreased by 0.3 percentage points, to 1.24%, the wage arrears at economically active enterprises decreased by 6.6%.
- Low level of debt burden on the city`s budget.
Factors constraining the credit rating
- A comparatively high specific gravity of transfers in city`s budget revenues (25.2%)
- Lower wages level (compared to that of average Ukrainian), the weighted average monthly wage is 91.5% of country`s weighted average wage.
- Majority of city`s economic development per capita indicators is lower than that of the country`s average, specifically the industrial production sales is 2.2x, the investments into fixed capital by 20%, foreign investments is 3.4x, the export goods turnover is 2.5x.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may 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
