Print

IBI-Rating has affirmed the rating of investment attractiveness of Kamianets-Podilskyi city

08.10.2020
National rating agency IBI-Rating informs on affirming of the rating of investment attractiveness of Kamianets-Podilskyi at invBBB+.

Such rating grade represent a sufficient investment attractiveness in comparison with other rating objects. The «+» mark is an intermediate rating category for the major categories.

Were taken into account:

1. Regulatory policy, conditions for doing business and budgetary capacity
The city has a consistent regulatory policy aimed at developing investment potential. Decisions which regulate business activities are public. Potential investment objects are identified and accessible (information and conditions are published on the site). In addition, business support programs have been implemented at local and regional level. The city has comfortable conditions for providing administrative services and sufficient level of service infrastructure for business.

At the local level, the city follows best practices in financial management and investor cooperation. In 2019, the budget was executed with a surplus, moreover, over fulfilled in revenues. The total revenues of the city budget in 2019 amounted to UAH 0.9 billion (including UAH 0.4 million - incoming transfers). A significant part of the funds is directed to the development of infrastructure and the social sphere. Thus, UAH 67.8 million of budget funds were allocated for financing the housing and communal services sector in 2019, and UAH 18.1 million for transport development. The amount of capital expenditures of the budget in 2019 amounted to UAH 50 million, the corresponding budget allocations for 2020 amounted to UAH 51 million. The level of debt burden on the budget continues gradually decrease, and its liquidity, even taking into account the impact of the COVID19 pandemic, is sufficient in 2020.

2. The structure of the economic complex of the city and the dynamics of its key indicators

The Kamianets-Podilskyi city is the administrative and economic center of the district and has the status of a regional subordination city. There are about 99 thousand inhabitants and about 2 thousand enterprises, as well as 5.1 thousand entrepreneurs. The economic complex is moderately diversified by industry and directions. The basis of the city's economy is formed by metallurgy, mechanical engineering, energy, light and food industry, as well as trade and services. Most economic indicators of city development are comparable to cities with a similar socio-economic profile.

In 2020, will be established the Kamianets-Podilskа city amalgamated territorial community, as part of Kamianets-Podilskyi city and 5 village councils. This will improve the quality of spatial planning in the annexed settlements and ensure the expansion of the local economy.

3. The labor market
Given the relatively low registered unemployment rate, the city's average wage in 2019 was UAH 8.2 thousand (65.2% of the country indicator), though it increased by 15.2% during the year. The average number of full-time employees has remained virtually unchanged over the last years and amounts to 15.4 thousand people, another 12.7 thousand are employed in small and medium-sized enterprises. There are 13 higher vocational and technical educational institutions in the city, which train specialists in various specialties. At that time, the city, as well as other regional centers of Ukraine, is characterized by the problem of outflow of qualified personnel abroad.

4. Natural-geographical potential and logistics capabilities

Kamianets-Podilskyi has a favorable geographical location. The availability of railway infrastructure and highways (national and regional importance) has a positive effect on the logistical capacity of the city. Transportation and warehousing infrastructure are moderately developed. At the same time, the relative distance of the international highways and the lack of air services somewhat limit the development of the logistical potential of the city and its tourist complex.

5. Living and safety conditions
The city has developed educational, medical, social, communal infrastructure and a satisfactory state of ecology. At the same time, the main problems of the engineering and transport sphere include the outdated condition of the housing stock and the deterioration of the external and internal home engineering networks, as well as the lack of financing of housing and utilities. Despite new construction, the vast majority of residential and technical facilities are physically and morally obsolete. At the same time, cooperation with the IFOs is being established to participate in the implementation of energy efficiency and energy efficiency measures.

Municipal department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua