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10.01.2007
Credit rating assigned to the city of Kamenets-Podilskiy affirmed at uaBB+ (uaBB plus)
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine, has today affirmed the uaBB+ (uaBB plus) long-term credit rating assigned to the city of Kamenets-Podilskiy. Outlook on the rating is Stable. To affirm the rating the "Credit-Rating" agency used indicators of 1H 2006 city`s financial and economic performance as well as other inside information furnished by the city council.
The uaBB issuer rating shows that its debt liabilities are the least affected by the risk of nonpayment of the principal and/or interest within speculative grade. The obligor, however, may be impaired to full and timely meet its commitment on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of nonpayment is low in the near future. The "+" and "-" modifiers denote rating`s relative status within major categories. The Stable Outlook denotes that there are no conditions to change rating in the course of the year.
Factors supporting the credit rating
- Growth in majority of city`s social and economic development indicators over
1H 2006 as compared to the similar period of 2005, specifically the investments into city`s fixed capital grew 3.5x up to UAH 76.8m, the foreign investments by 5.1% - up to
USD 8.2m, the retail turnover by 26.6%, up to UAH 102m, export turnover by 6.6%, up to USD 40.8m. - Improvement in a number of city`s social development indicators over
1H 2006 as compared to the similar period of 2005, specifically decline in registered unemployment level by 0.3 percentage point to 2.8% (3.1% weighted average of the country), growth in monthly wages by 14% - up to UAH 662.5 and decrease in wage arrears by 23.5% - to UAH 1.4m. - No direct city`s debt liabilities as of 01 Oct. 2006
Factors constraining the credit rating
- Growing city`s budget dependency on transfers from state budget: the specific gravity of this source in 1H 2006 budget revenues amounted to 51.5% (47.1% in 2005).
- A number of city`s 1H 2006 social and economic development per capita indicators is
lower than that average of the country, specifically the industrial production sales is
3.2x lower, the direct foreign investments is 4.8x lower, the investments into fixed
capital is lower.
by 8%, export turnover is 2.2x lower, retail turnover is lower by 11%, the residential premises set in operation is 2.8x lower. - Lower size and growth rates of monthly wages than those average in Ukraine according to Jan.-June 2006 totals.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can be found at 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
