IBI-Rating has affirmed the credit rating and the rating of investment attractiveness of Ternopil city

National rating agency IBI-Rating informs on affirming of the credit rating of Ternopil city at uaВВВ+ grade, keeping the «stable» outlook and the rating of investment attractiveness at invA- grade. Such rating grades represent sufficient ability of the city to pay off its financial commitments and the high investment attractiveness. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months.

The affirmed ratings grade due by keeping the positive dynamics of key indicators of socio-economic development and budget, development of service, communal, social and educational infrastructure. The impact of the negative factors on the financial capacity of the city remains moderate, despite preserving the difficult economic situation in the country and continuing the military conflict in eastern Ukraine.

The rating grades are maintained by importance of the city as a regional center, acceptable consolidated debt load on the revenue side of the budget, the continued increase in the volume of revenues to the local budget by almost all major items, as well as comparable to the average Ukrainian level of budget security. At the same time, the city has a significant need for attracting additional funding, including for the restoration of city infrastructure, housing and communal services.

6 key indicators of the Ternopil city:

1. During first half of 2018, was put into operation 37.8 thousand square meters of housing in the city, which is almost twice as high as the corresponding indicator in the country per 1 resident; the volume of executed construction works in Ternopil comparison with the first half of 2017 increased by 22.9% to UAH 523.8 million.

2. The volume of industrial products sales in the first half of 2018 against the corresponding period in 2017 increased by 12.2% to UAH 5.8 billion.

3. Retail trade turnover in the first half of 2018 grew by 6.9% to UAH 3.74 billion, and in terms of 1 inhabitants it is in 2.3 times higher than the average indicator for Ukraine.

4. Own revenues of the city budget in January-June 2018 compared to the same period of previous year increased by 20.3% to UAH 0.63 billion; the share of tax revenues in the structure of own revenues of the city amounted to 90%. Tax revenues in the analyzed period increased by 21.5%, non-tax - by 10.4%.

5. The city budget was executed with a surplus of UAH 17.7 million for January-June 2018. The development expenditures are directed from the city budget in the amount of UAH 134.1 million, which is in 14.4% more than in the same period in 2017.

6. The level of fiscal capacity in January-June 2018 amounted to UAH 2.9 thousand. The city budget remains a donor budget, transferring a reverse grant to the state budget. At the same time, the volume of transfers from the state budget amounted to 52.4% of the total revenue part of the city budget for the corresponding period, and is mainly directed at financing social protection expenditures, educational and medical spheres.

Dmytro Zadesenets, Director of the municipal department of the IBI-Rating agency, underlined: «The development of the investment potential of Ternopil city is positively influenced by the actions of local authorities on infrastructure development and improvement of the investment climate, high level of diversification of the city's economy, as well as the possibility of its further growth due to domestic demand and good location. The city has its own: favorable environmental conditions; developed communal sphere; educational and social infrastructure, as well as significant investments by local authorities in the life support system of the city».

According to the words of Tetyana Korchak, Head of Economics, Industry and Labor Department: «With the increase of the possibilities of filling the city budget, additional resources were created to improve the infrastructure and the introduction of innovative technologies in the transport sector, where a number of projects are already being implemented with the participation of the city authorities and new ones are planned to be implemented. The concept of the newly created Industrial Park «Ternopil» was approved».

In order to conduct the analytical research the materials obtained from Ternopil 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