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IBI-Rating has affirmed the rating of investment attractiveness of Ternopol city at invВВВ+

03.11.2016
IBI-Rating informs on the affirmation of the rating of investment attractiveness of Ternopil city at invВВВ grade (sufficient investment attractiveness).

The affirmed rating of investment attractiveness of Ternopil city is due to its significance as a regional center. The convenient geographical location, natural and climatic conditions given the existing loyal environmental legislation as well as the absence of significant environmental problems, create additional opportunities for investors. Results of the elections held in Ternopil city demonstrated support for the actions of the local authorities by the city residents.

The volume of investment in the local economy this year show a positive trend. Thus, the rate of capital investment per capita in the first half of 2016 compared to the same period last year increased 1.6 times and is 15% higher than the average for Ukraine, and the rate of foreign direct investment increased by 1.6% and remains well below the average for Ukraine and demonstrates the lack of direct foreign investment in the city.

Given the low tax burden on the local budget, the opportunities for the city to participate in the implementation of major investment projects are limited by the development of financial institutions and the lack of essential tools of granting benefits to investors. Nevertheless, the city has a positive experience of cooperation with the international financial institutions, and meets its debt obligations in a timely manner.

The city is inherent in good provision with health care, education and cultural establishments, and also there are objects that belong to the historical and cultural heritage. There is a potential to increase the number of the city residents due to an inflow of people from regions as well as a positive natural increase in population.

A positive impact on the rating may have as follows: the improved regulatory framework and successful implementation of the basic programs of the city development, growth of most of the indicators of social and economic development to the national average level, the improved state of the infrastructure. A negative impact on the rating may have as follows: further deterioration of the infrastructure, identified complaints from investors on the activities of the local authorities, decline in performance indicators of enterprises and reduction of the volume of investments.

In order to carry out the analytical research the materials received from Ternopil city were used, including the annual Treasury statements for the I half of 2016, indicators of social and economic development and the city's budget for the I half of 2016, other necessary internal information as well as the information from the open sources, which the Rating agency considers reliable.

Department of municipal ratings area

For more information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua