Print
IBI-Rating has affirmed the credit rating and rating of investment attractiveness of Bila Tserkva city
11.01.2021National rating agency IBI-Rating informs on affirming of the credit rating of Bila Tserkva city at uaВВВ+ grade, with an «evolving» outlook and the rating of investment attractiveness at invА- grade.
Such rating grades represent sufficient capacity of the city to pay off its financial liabilities and high investment attractiveness. The «evolving» outlook, with the highest probability, implies of rating changes during the year. Currently, such rating outlook is applied to all clients of the Agency. It is due to increased uncertainty regarding the actions of authorities and business entities in case of aggravation of the epidemiological situation in Ukraine and the world. The notations «-» and «+» indicates an intermediate rating category relative to the main category.
The affirmed rating grades are due to:
1. The structure of the economic complex of the city and the dynamics of key indicators
Bila Tserkva city has a sufficiently diversified economy, a strong industrial complex and a well-developed trade network. According to the results of January-June 2020, the retail trade turnover per capita amounted to UAH 17.5 thousand, which is 45% higher than the value of the indicator for the same period last year and significantly higher than the value of this indicator in Ukraine as a whole. Sales of industrial products per capita in the city in the first 6 months of 2020 amounted to UAH 21.2 thousand, which is slightly lower than in Ukraine as a whole. Due to the introduction of anti-epidemic measures caused by the COVID-19 pandemic, the value of the indicator decreased by 25% compared to the same period last year.
2. The effectiveness of financial policy and budget indicators
Own budget revenues for 9 months of 2020 amounted to UAH 846.8 million (+10.22% compared to the same period last year). According to the results of 9 months of 2020, the plan for own revenues from the general fund was fulfilled by 100.9%. Revenues from the special fund were fulfilled by 166.6%. The budget of Bila Tserkva city is characterized by a sufficient level of liquidity. According to the results of 9 months of 2020, the total budget surplus of the city amounted to UAH 18,147.7 thousand. Direct debt burden is low. As of October 1, 2020, the amount of direct debt is UAH 29.2 million (3.45% of own revenues for 9 months of 2020). Borrowings guaranteed by the city council are absent.
3. Investment potential of the city
The advantages of the geographical location of Bila Tserkva city are the proximity to the capital (80 km) and a convenient location at the intersection of highways and railways, complemented by convenient transport and logistics infrastructure. Near the city there are deposits of minerals: loam, granite, granodiorite, sand, radon mineral waters. The city has the necessary infrastructure for cultural, health, event, extreme and business tourism.
Competition for business and labor costs are moderate. The territory of Bila Tserkva city has free areas for further development of the city and placement of new enterprises and residential areas, which is laid down in the Master Plan. The territorial community owns a number of objects of commercial interest. The city has created an infrastructure for business development, including 2 industrial parks, the total land bank of which exceeds 70 hectares. The investor support center is the Bila Tserkva City Council utility company «Bila Tserkva Strategic Development Agency».
In order to conduct the analytical research, the materials obtained from Bila Tserkva city have been used, including: indicators of the social and economic development, statistical data, treasury statements, program materials, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Municipal department
For more information, please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
Such rating grades represent sufficient capacity of the city to pay off its financial liabilities and high investment attractiveness. The «evolving» outlook, with the highest probability, implies of rating changes during the year. Currently, such rating outlook is applied to all clients of the Agency. It is due to increased uncertainty regarding the actions of authorities and business entities in case of aggravation of the epidemiological situation in Ukraine and the world. The notations «-» and «+» indicates an intermediate rating category relative to the main category.
The affirmed rating grades are due to:
1. The structure of the economic complex of the city and the dynamics of key indicators
Bila Tserkva city has a sufficiently diversified economy, a strong industrial complex and a well-developed trade network. According to the results of January-June 2020, the retail trade turnover per capita amounted to UAH 17.5 thousand, which is 45% higher than the value of the indicator for the same period last year and significantly higher than the value of this indicator in Ukraine as a whole. Sales of industrial products per capita in the city in the first 6 months of 2020 amounted to UAH 21.2 thousand, which is slightly lower than in Ukraine as a whole. Due to the introduction of anti-epidemic measures caused by the COVID-19 pandemic, the value of the indicator decreased by 25% compared to the same period last year.
2. The effectiveness of financial policy and budget indicators
Own budget revenues for 9 months of 2020 amounted to UAH 846.8 million (+10.22% compared to the same period last year). According to the results of 9 months of 2020, the plan for own revenues from the general fund was fulfilled by 100.9%. Revenues from the special fund were fulfilled by 166.6%. The budget of Bila Tserkva city is characterized by a sufficient level of liquidity. According to the results of 9 months of 2020, the total budget surplus of the city amounted to UAH 18,147.7 thousand. Direct debt burden is low. As of October 1, 2020, the amount of direct debt is UAH 29.2 million (3.45% of own revenues for 9 months of 2020). Borrowings guaranteed by the city council are absent.
3. Investment potential of the city
The advantages of the geographical location of Bila Tserkva city are the proximity to the capital (80 km) and a convenient location at the intersection of highways and railways, complemented by convenient transport and logistics infrastructure. Near the city there are deposits of minerals: loam, granite, granodiorite, sand, radon mineral waters. The city has the necessary infrastructure for cultural, health, event, extreme and business tourism.
Competition for business and labor costs are moderate. The territory of Bila Tserkva city has free areas for further development of the city and placement of new enterprises and residential areas, which is laid down in the Master Plan. The territorial community owns a number of objects of commercial interest. The city has created an infrastructure for business development, including 2 industrial parks, the total land bank of which exceeds 70 hectares. The investor support center is the Bila Tserkva City Council utility company «Bila Tserkva Strategic Development Agency».
In order to conduct the analytical research, the materials obtained from Bila Tserkva city have been used, including: indicators of the social and economic development, statistical data, treasury statements, program materials, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Municipal department
For more information, please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua