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IBI-Rating has affirmed the credit rating and the rating of investment attractiveness of Kharkiv city
16.11.2018National rating agency IBI-Rating informs on affirming of the credit rating of Kharkiv city at uaА+ grade, keeping the «stable» outlook and the rating of investment attractiveness at invАА grade.
Such rating grades represent excellent investment attractiveness and high ability of the city to pay off its financial commitments. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months. The affirmed ratings grade due to the importance of the city as one of the major cities of Ukraine; business, cultural and educational center; preserving the positive dynamics of key indicators of socio-economic development and the city budget, most of which equal or exceed the average per country's per capita; low direct and acceptable consolidated debt load; diversification of the economic complex of the city by types of economic activity; the development of service, communal, social and educational infrastructure. The impact of the negative factors on the financial capacity of the city remains moderate, despite preserving the difficult economic situation in the country and continuing the military conflict in eastern Ukraine. At the same time, the city has a significant need for attracting additional funding, including for the restoration of city infrastructure, housing and communal services.
Key indicators of the Kharkiv city economy:
1. In January-June 2018, the city budget was executed with a surplus in amount of UAH 341.4 million.
2. Own revenues of the city budget in January-June 2018 compared to the corresponding period of last year increased by 19.7% - to UAH 4.5 billion; the share of tax revenues in the structure of own revenues of the city amounted to 92%, and the main sources of their filling are PIT, excise, local taxes and fees.
3. During the first six months of 2018, in the city was put into operation 167.6 thousand square meters of housing, which is in 1.5 times higher than the corresponding indicator in the country per capita. The volume of executed construction works in comparison with the first half of 2017 increased by 41.2%.
4. During the first half of 2018, against the corresponding period of the previous year, the volume of developed capital investments increased by 31.6% to UAH 5.2 billion .
5. The volume of sales of industrial products in the first half of 2018 compared to the corresponding period in 2017 increased by 19.2% - to UAH 41.0 billion.
6. Retail trade turnover in the first half of 2018 in comparative prices increased by 0.5% to UAH 19.8 billion, and is in 1.9 times higher than the average per country's per capita.
7. The level of budget provision in January-June 2018 amounted to UAH 3.1 thousand. The city budget remains a donor budget, transferring to the state budget a reverse grant (UAH 106.73 million for January-June 2018).
According to the words by Mr. Dmytro Zadesenets, Director of the municipal department of the IBI-Rating agency: «The positive impact on the development of the investment potential of the Kharkiv city has a high level of diversification of the city's economy, as well as the possibility of its further growth due to domestic demand, good location, availability of necessary resources incl. labor».
«The affirming of the credit rating of Kharkiv city at the investment level indicates a high mark of the main indicators of the budget. The availability of sustainable sources of budget revenues allows us to guarantee financing of all city obligations», - has said Mr. Mykhailo Fatieiev, Deputy Mayor, Director of the Department of Economics and Municipal Property of the Kharkiv City Council.
In order to conduct the analytical research the materials obtained from Kharkiv city 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
Such rating grades represent excellent investment attractiveness and high ability of the city to pay off its financial commitments. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months. The affirmed ratings grade due to the importance of the city as one of the major cities of Ukraine; business, cultural and educational center; preserving the positive dynamics of key indicators of socio-economic development and the city budget, most of which equal or exceed the average per country's per capita; low direct and acceptable consolidated debt load; diversification of the economic complex of the city by types of economic activity; the development of service, communal, social and educational infrastructure. The impact of the negative factors on the financial capacity of the city remains moderate, despite preserving the difficult economic situation in the country and continuing the military conflict in eastern Ukraine. At the same time, the city has a significant need for attracting additional funding, including for the restoration of city infrastructure, housing and communal services.
Key indicators of the Kharkiv city economy:
1. In January-June 2018, the city budget was executed with a surplus in amount of UAH 341.4 million.
2. Own revenues of the city budget in January-June 2018 compared to the corresponding period of last year increased by 19.7% - to UAH 4.5 billion; the share of tax revenues in the structure of own revenues of the city amounted to 92%, and the main sources of their filling are PIT, excise, local taxes and fees.
3. During the first six months of 2018, in the city was put into operation 167.6 thousand square meters of housing, which is in 1.5 times higher than the corresponding indicator in the country per capita. The volume of executed construction works in comparison with the first half of 2017 increased by 41.2%.
4. During the first half of 2018, against the corresponding period of the previous year, the volume of developed capital investments increased by 31.6% to UAH 5.2 billion .
5. The volume of sales of industrial products in the first half of 2018 compared to the corresponding period in 2017 increased by 19.2% - to UAH 41.0 billion.
6. Retail trade turnover in the first half of 2018 in comparative prices increased by 0.5% to UAH 19.8 billion, and is in 1.9 times higher than the average per country's per capita.
7. The level of budget provision in January-June 2018 amounted to UAH 3.1 thousand. The city budget remains a donor budget, transferring to the state budget a reverse grant (UAH 106.73 million for January-June 2018).
According to the words by Mr. Dmytro Zadesenets, Director of the municipal department of the IBI-Rating agency: «The positive impact on the development of the investment potential of the Kharkiv city has a high level of diversification of the city's economy, as well as the possibility of its further growth due to domestic demand, good location, availability of necessary resources incl. labor».
«The affirming of the credit rating of Kharkiv city at the investment level indicates a high mark of the main indicators of the budget. The availability of sustainable sources of budget revenues allows us to guarantee financing of all city obligations», - has said Mr. Mykhailo Fatieiev, Deputy Mayor, Director of the Department of Economics and Municipal Property of the Kharkiv City Council.
In order to conduct the analytical research the materials obtained from Kharkiv city 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