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

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. Suitable 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. The City Council approved the City Development Strategy, which defines the main directions and stages of the city's development 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, commissioning of housing and budgetary provision).

The activity of foreign investors in the city is sufficient. In 2017, there was an increase of USD 14.1 mln. For a consecutive year, volumes of capital investments have increased, in particular, in 2017, by 6.1% to UAH 11.1 bln.

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 an increase in the existing population, which is due to the migration inflow.

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, deterioration of the environmental situation, reduced volume of investments, 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