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IBI-Rating has affirmed the credit rating and rating of investment attractiveness of Vinnytsia City Territorial Community
30.05.2023
National rating agency IBI-Rating informs on affirming of the credit rating of Vinnytsia city territorial community (hereinafter referred to as Vinnytsia CTC) at uaА+ grade with outlook revision from «negative» to «evolving» and keeping on the CreditWatch list, as well as the rating of investment attractiveness at invAA grade.
Such rating grades reflect the municipality's excellent investment attractiveness and high ability to pay off its obligations. The «+» mark indicates an intermediate rating category relative to the main category.
The «evolving» outlook indicates possible changes in the credit rating during the year. Being on the CreditWatch list is due to the deterioration of the business environment and increased uncertainty about the prospects for economic development amid ongoing military operations in Ukraine due to the aggression of the Russian Federation. However, given the continued positive dynamics of the community's own budget revenues, despite the ongoing martial law, the negative outlook was changed to «evolving» outlook.
Were taken into account:
1. Indicators of socio-economic development
The economy of Vinnytsia CTC is characterized by diversified industry, developed service, social, communal and transport infrastructure. Most indicators of socio-economic development per capita exceed those of Ukraine as a whole, in particular: revenue from sales of industrial products, retail turnover, housing commissioning, etc.
2. Financial policy efficiency
Despite the fact that the budget execution in 2022 took place under martial law, the amount of the community's own revenues in 2022 increased by 23.02% compared to 2021. The share of the community's own budget revenues in 2022 amounted to 85.12% (compared to 80.82% in 2021). The amount of own budget revenues of Vinnytsia CTC per capita in 2022 amounted to UAH 13.62 thousand (compared to UAH 10.24 thousand in 2021), which is higher than the indicator for Ukraine as a whole.
The budget of Vinnytsia CTC demonstrates a sufficient level of liquidity: as of 01.01.2023, the ratio of general fund balances to general fund expenditures was 12.21%, and the liquidity ratio for the special fund was 12.37%. According to the results of 2022, the budget of Vinnytsia CTC was executed with a surplus of UAH 709,973.8 thousand. The debt burden is low. As of 01.01.2023, the direct debt of the City Council amounted to 0.98%, and the consolidated debt amounted to 9.24% of the own revenues of Vinnytsia CTC budget for 2022. я
3. Investment potential of the city
The community has a favorable geographical location at the intersection of major Ukrainian and European transport corridors, as well as a developed industrial, trade and business infrastructure.
The City Council pays considerable attention to supporting and developing small businesses and innovative activities. There are three industrial parks located in the territory of Vinnytsia CTC, which are included in the Register of Industrial Parks: Vinnytsia Industrial Park, Vinnytsia Refrigeration Engineering Cluster Industrial Park, and Winter Sport Industrial Park. By the decision of the City Council dated 23.12.2022 No. 1345 «On the establishment of an industrial park and approval of the Concept of Vin Industries Park», another industrial park was established on the territory of the community. The process of creating Ukraine's first municipal innovation and technology park, Krystal, is underway. Business development is also facilitated by the availability of free land plots and municipal real estate for sale and lease.
The community has significant achievements in energy efficiency and experience in implementing investment projects with the participation of international organizations.
In order to conduct the analytical research, the materials provided by Vinnytsia CTC 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 additional information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
Such rating grades reflect the municipality's excellent investment attractiveness and high ability to pay off its obligations. The «+» mark indicates an intermediate rating category relative to the main category.
The «evolving» outlook indicates possible changes in the credit rating during the year. Being on the CreditWatch list is due to the deterioration of the business environment and increased uncertainty about the prospects for economic development amid ongoing military operations in Ukraine due to the aggression of the Russian Federation. However, given the continued positive dynamics of the community's own budget revenues, despite the ongoing martial law, the negative outlook was changed to «evolving» outlook.
Were taken into account:
1. Indicators of socio-economic development
The economy of Vinnytsia CTC is characterized by diversified industry, developed service, social, communal and transport infrastructure. Most indicators of socio-economic development per capita exceed those of Ukraine as a whole, in particular: revenue from sales of industrial products, retail turnover, housing commissioning, etc.
2. Financial policy efficiency
Despite the fact that the budget execution in 2022 took place under martial law, the amount of the community's own revenues in 2022 increased by 23.02% compared to 2021. The share of the community's own budget revenues in 2022 amounted to 85.12% (compared to 80.82% in 2021). The amount of own budget revenues of Vinnytsia CTC per capita in 2022 amounted to UAH 13.62 thousand (compared to UAH 10.24 thousand in 2021), which is higher than the indicator for Ukraine as a whole.
The budget of Vinnytsia CTC demonstrates a sufficient level of liquidity: as of 01.01.2023, the ratio of general fund balances to general fund expenditures was 12.21%, and the liquidity ratio for the special fund was 12.37%. According to the results of 2022, the budget of Vinnytsia CTC was executed with a surplus of UAH 709,973.8 thousand. The debt burden is low. As of 01.01.2023, the direct debt of the City Council amounted to 0.98%, and the consolidated debt amounted to 9.24% of the own revenues of Vinnytsia CTC budget for 2022. я
3. Investment potential of the city
The community has a favorable geographical location at the intersection of major Ukrainian and European transport corridors, as well as a developed industrial, trade and business infrastructure.
The City Council pays considerable attention to supporting and developing small businesses and innovative activities. There are three industrial parks located in the territory of Vinnytsia CTC, which are included in the Register of Industrial Parks: Vinnytsia Industrial Park, Vinnytsia Refrigeration Engineering Cluster Industrial Park, and Winter Sport Industrial Park. By the decision of the City Council dated 23.12.2022 No. 1345 «On the establishment of an industrial park and approval of the Concept of Vin Industries Park», another industrial park was established on the territory of the community. The process of creating Ukraine's first municipal innovation and technology park, Krystal, is underway. Business development is also facilitated by the availability of free land plots and municipal real estate for sale and lease.
The community has significant achievements in energy efficiency and experience in implementing investment projects with the participation of international organizations.
In order to conduct the analytical research, the materials provided by Vinnytsia CTC 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 additional information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua