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

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 (211 services) and sufficient level of service infrastructure for business.

Total budget revenues in 2018 amounted to UAH 0.9 billion, of which UAH 0.4 billion is own revenues. Part of the city budget funds are invested in infrastructure projects: the capital expenditures of the budget in 2018 amounted to UAH 48 million, the corresponding estimates for 2019 amounted to UAH 41 million. The city government supports the utility companies. The most using instruments are capital transfers and guarantees on loans from international institutions. It helps to utilities to update its material base. At the same time, the consolidated debt burden on the city budget decreased from 35.1% at the beginning of 2018 to 29.2% at the beginning of 2019.

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 99.8 thousand inhabitants and about 2 thousand enterprises and institutions, 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 of the economic indicators in 2016-2018 showed moderate growth and are comparable to the national average. In 2018, compared to 2017, retail trade turnover increased by 11.2% (up to UAH 1.8 billion), the volume of services sold - by 17.7% (up to UAH 421.9 million), the volume of construction works completed - by 37.5% (up to UAH 220.4 million), turnover - by 10.4% (up to 44.3 million tons). At the same time, a number of economic indicators remained at the level of the previous year or showed a slight decrease. This is, first of all, the volume of industrial production, capital and foreign direct investment, foreign trade turnover.

3. The labor market
Given the relatively low registered unemployment rate, the city's average wage in the Q4 of 2018 was UAH 7.1 thousand (74% of the country indicator), though it increased by 15% during the year. The average number of full-time employees has remained virtually unchanged over the last years and amounts to 16,000 people, another 11,000 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 the same time, the problem of outflow of skilled personnel abroad is characteristic of the city, as well as of other regional centers of Ukraine.

4. Natural-geographical potential and logistics capabilities The total area of the city is 2.8 thousand hectares. 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