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IBI-Rating has affirmed credit rating and investment attractiveness rating of Bila Tserkva city territorial community

28.12.2021
National rating agency ІВІ-Rating informs on affirmation of credit rating of Bila Tserkva city territorial community at uaА– grade with an «evolving» outlook and investment attractiveness rating at invА+ grade.

Such rating grades represent the high ability of the community to pay off its financial commitments and high investment attractiveness. The «evolving» outlook, with the highest probability, implies of rating changes during the year. Currently, such rating outlook is applied to all municipal sector clients of the Agency. 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 notations «+» and «–» indicate an intermediate rating category relative to the main category.

Were taken into account:

1. The structure of the economic complex of the community and the dynamics of key indicators
Bila Tserkva city has a fairly diversified economy, a powerful industrial complex and a developed trade network. There are 539 industrial enterprises in the city. The number of industrial enterprises is dominated by: enterprises for the production of metal products (62 companies or 11.5% of active enterprises), enterprises for the production of food products (55 companies or 10.2%), enterprises for the production of rubber and plastic products (46 companies or 8 .5%).
In the first half of 2021, more than 90 enterprises of various forms of ownership were engaged in foreign economic operations, exporting goods to 54 countries. The community is well provided with trade, restaurant and service facilities. As of July 1, 2021, there were 12 markets and 2 trading floors, 638 grocery stores, 728 non-food stores, and 263 restaurants.

2. Financial policy effectiveness and budget performance
According to the results of the first half of 2021, the plan of community’s budget own income for the general fund was fulfilled by 110.1%, the plan for the special fund - by 260.6%. The amount of the community's own income for 6 months of 2021 amounted to UAH 736.54 million (+30.37% or +UAH 171.59 million compared to the same period in 2020). The budget of Bila Tserkva CTC as of July 1, 2021 showed a high level of liquidity. According to the results of the first half of 2021, the ratio of the balances on the general fund accounts to the general fund expenditures was 17.96%, the liquidity ratio for the special fund was 16.49%. According to the results of the first half of 2021, the budget surplus of Bila Tserkva CTC amounted to UAH 64.33 million. The surplus of the general fund amounted to UAH 110.79 million, and the deficit of the special fund amounted to UAH 46.46 million. As of July 1, 2021, the total amount of direct debt amounted to UAH 30.24 million (1.71% of planned income for 2021). That is, the direct debt burden is low. Credit funds are nominated in the national currency, that reduces the sensitivity to currency risk. Also a positive factor is the long-term repayment period of the loan and the absence of peak burdens on payments. As of July 1, 2021, there are no borrowings guaranteed by the city council.

3. Investment potential of Bila Tserkva city territorial community
The advantages of the geographical location of Community are its proximity to the capital (80 km) and an advantageous location at the intersection of road and railways, which is complemented by a convenient transport and logistics infrastructure. Near the city there are deposits of minerals: loam, granite, granodiorite, sand, mineral radon waters. The city has the necessary infrastructure for cultural, health, event, extreme and business tourism. Business competition and labor costs are moderate. On the territory of the community there are free areas for the further development of the city and the placement of new enterprises and residential areas, which is laid down in the General Plan. The territorial community owns a certain number of objects of commercial interest and can be privatized or leased.
The city authorities annually allocate funds for the implementation of measures in the field of energy efficiency. In the housing and communal services of the city, the modernization of heat and water supply systems of housing and communal services enterprises has been partially carried out. Measures to establish energy-saving equipment and technologies are also being taken.
The infrastructure of business development has been created in Bila Tserkva CTC, including 2 industrial parks: «Bila Tserkva 1» and «Bila Tserkva 2». In the future it is planned to open the park «Bila Tserkva 3». The management company «Industrial Park Management» takes on the solution of organizational and economic issues, giving the opportunity to focus on optimizing production processes for the park residents. In addition, the work is underway to create a science park and the first eco-industrial park in Ukraine. In 2019, the Bila Tserkva City Council's Utility Company «Bila Tserkva Cargo Aviation Complex» applied for participation in the international project «Global Eco-Industrial Parks Programme», as it actually works on the analog of the management company of the industrial park.
In August 2021, the results of the assessment of the Bila Tserkva Cargo Aviation Complex industrial park performed by the experts of the Center for Resource Efficient and Clean Production within the framework of Global Eco-Industrial Parks Programme were discussed. Bila Tserkva Cargo Aviation Complex meets more than half of the key indicators applied to eco-industrial parks and has significant potential to achieve other indicators in the next few years, including during the active implementation of the Project. Considerable attention is paid to the organization of communication with potential investors. The program of attracting investments and improving the investment climate in Bila Tserkva CTC for 2021-2023 has been approved. Bila Tserkva city council municipal enterprise «Bila Tserkva Strategic Development Agency» is the center of investor support.

In order to conduct the analytical research the materials obtained from structural subdivisions of Bila Tserkva city territorial community 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 more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua