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IBI-Rating has affirmed the rating of investment attractiveness of Kharkiv city at invАА grade

13.12.2016
Rating agency IBI-Rating informs on affirming of the rating of investment attractiveness of Kharkiv city at invАА grade (excellent investment attractiveness).

The grade of the rating of investment attractiveness of Kharkiv city is due to its importance as one of the major cities in Ukraine, as well as a regional business, cultural, educational center. Favorable natural and climatic conditions and industrial potential, providing additional opportunities for investors, are constrained by infrastructural problems, in particular, the obsolete engineering and transport networks, housing and communal economy facilities, etc. At present, modernization and reconstruction of a part of such facilities is carry out, including, with the envisaged involvement of international financial institutions.

Actions on increasing the level of management culture in the city and as regards improving its investment climate, high consolidation of power branches, as well as the coordination of the local authorities in addressing the key issues of city life, creating the potential for growth in economic performance in several sectors of the economy.

The city has identified additional opportunities in the financial markets due to higher than in other Ukrainian cities, the development of financial institutions and a moderate debt burden on the local budget. City authorities conducting active measures to improve the business climate and the conditions for economic development, free admission investments, including that done by improvements in policy documents, as well as holding forums and conferences on this topic. In the near future, expected approving by the city council of the city development strategy, which will determine the main directions and stages of development of the city until 2020.

Kharkiv city is inherent in high indicators of social and economic development, some of which exceeding average indicators for Ukraine per capita (industrial output sold, housing commissioned, retail trade turnover, budgetary provision).

The activity of foreign investors in the city is sufficient, but it is accompany by decrease in the volume of foreign direct investment. The ratio of foreign direct investment per capita is comparable to the average for Ukraine. The city is inherent in good provision in establishments of health care, education and culture, financial institutions, availability of all key transport infrastructure. Indicators of income of the population are below the average income in the country. There is a reduction of actual population due to natural decrease and migration.

A positive impact on the city rating may have, as follows: improved regulatory framework and successful implementation of the basic programs of the city development, growth of most indicators of social and economic development per capita above the state level, improved state of the infrastructure. A negative impact on the city rating may have, as follows: detection of complaints from investors on activities of the local authorities, environmental degradation, decreased indicators of the city development, reduced volume of investments, and further deterioration of infrastructure.

In order to conduct the analytical research the materials provided by Kharkiv city, have been used, including: indicators of social and economic development, materials of statistical bulletins; annual 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