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

National rating agency IBI-Rating informs on affirming of the credit rating of Vinnytsia city amalgamated territorial community (further ATC) at uaA grade with an «evolving» outlook and the rating of investment attractiveness at invA+ grade.

Such rating grades represent the high investment attractiveness and strong ability of the city to pay off its financial commitments. The «evolving» outlook, with the highest probability, implies of rating changes during the year. 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 notation «+» indicates an intermediate rating category relative to the main category.

The affirmed credit rating grade is due to the effective management of local budget revenues and expenditures, which ensured a sufficient level of liquidity and a moderate debt burden, despite the intensification of negative phenomena in the country's economy and budget sector in the second quarter of 2020. The rating agency notes the preservation of high capacity of the community budget to finance current expenditures, development and debt service expenditures, as well as a high level of budget security. Thus, the amount of own revenues of the budget of Vinnytsia ATC per 1 inhabitant exceeds the average figures for local budgets and the indicators of most cities of Ukraine. There is also a high level of socio-economic development of the Vinnytsia community and the diversification of the economic complex by industries and economic entities. In the administrative center of the community, the key state authorities of the oblast are located, which speeds up the receipt of administrative and other public services for businesses and residents. In addition, the municipality has good logistics, a large number of various educational institutions and a developed service, communal and social infrastructure. Competition for business and labor costs are lower than in the capital.

At the same time, the policy of transparency in relation to business on the part of local authorities has a positive effect on the investment climate in ATC, as well as on economic, personnel and social potential. At the same time, the economy and the budget of the community are sensitive to the risks posed by quarantine restrictions and changes in legislation in the framework of measures to combat coronavirus disease (COVID-19). With the expected reduction in budget revenues, there is a significant need to upgrade the infrastructure, which will require the allocation of a significant amount of budget resources.

In order to conduct the analytical research, the materials obtained from Vinnytsia ATC have been used, including: socio-economic development indicators, statistics, treasury reports, program materials, other necessary internal information, as well as information from open sources, which the Rating agency considers reliable.