IBI-Rating has affirmed the credit rating and rating of investment attractiveness of Vinnytsia city

National rating agency IBI-Rating informs on affirming of the credit rating of Vinnytsia city at uaA grade, keeping the «stable» outlook and the rating of investment attractiveness at invA+ grade.

Such rating grades represent the high investment attractiveness and strong 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 grades is due by maintaining the positive dynamics of key indicators of socio-economic development and budget, diversifying its economic complex by types of economic activity and low level of concentration of revenues to the budget by taxpayers, as well as development of service, communal, social and educational infrastructure. The impact of negative factors on the financial capacity of the city remains moderate, despite the persistence of the difficult economic situation in the country and the continuation of the military conflict in eastern Ukraine.

The rating grades are supported by the significance of the city as a regional center, the continued growth of local budget revenues across all major items, an effective local government policy on local debt management, and the maintenance of a low level of consolidated debt load for expected growth in the future. Vinnytsia has a high level of budget security: the amount of budget revenues (excluding transfers) per capita exceeds the average figures for local budgets and indicators of most Ukrainian cities. At the same time, the city needs to attract additional funding, including for the restoration of city's infrastructure, housing and communal services.

8 key indicators of the Vinnytsia city economy of the first half of 2018:
1. The volume of sales of industrial products against the corresponding period in 2017 increased by 10.0% - to UAH 14.8 billion.
2. Retail trade in comparative prices grew by 1.7% to UAH 3.6 billion, foreign trade turnover by 38.8% to USD 667.6 million.
3. The volume of capital investments increased in 1.5 times to UAH 1,725.1 million, foreign direct investment - by 14.2% to USD 132.4 million.
4. The volume of executed construction works increased by 26.5%, 53.7 thousand square meters of housing was put into operation, which is in 1.8 times higher than the national average per one inhabitant.
5. Revenues to the city budget in comparison grew by 25.1% to UAH 2.4 billion, including income from the alienation of property and sale of land - by 2.6 times to UAH 45.0 million, tax and non-tax revenues at 26.5% to UAH 1,082.0 million and in 3.0% to UAH 149.7 million, respectively.
6. The development expenditures (capital expenditures) were directed from the city budget in the amount of UAH 387.4 million, which is in 14.5% more than in the same period of 2017.
7. The city budget was executed with a surplus of UAH 117.2 million, which is in 2.2 times more than the corresponding period of 2017.
8. The level of budget security was UAH 3.5 thousand, which is 1.2 times higher than the national average. The city budget remains a donor budget, transferring to the state budget a reverse grant (UAH 40.9 million, against UAH 23.5 million for the corresponding period in 2017).

Director of the municipal department of the IBI-Rating agency, Mr. Dmytro Zadesenets, has accented: «Vinnytsia have high financial capacity, its further growth is promoted by actions of local authorities on expansion of boundaries of Vinnytsia and creation in the current year on the basis of the city of Vinnytsia united territorial community».

«We step by step successfully implement programmatic measures to raise funds for investors and new industries. To do this were created:
- industrial park «Vinnytsia cluster of refrigeration engineering», which is ready to launch a newly created refrigeration plant;
- «Vinnytsia industrial park», the investor is involved - the company HEAD. A Memorandum of Understanding was signed, according to which the company intends to build a plant for production of winter sports (skiing, ski boots and ski rails);
- there are arrangements for attracting new investors, the Investment Passport of the city has been updated. The decision of IBI-Rating - confirmation of our work and is a positive signal for investors, both foreign and domestic», - has commented the results of the rating affirming Mr. Serhii Morhunov, Mayor of Vinnytsia.

In order to conduct the analytical research, the materials obtained from Vinnytsia 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