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IBI-Rating has upgraded the rating of investment attractiveness of Vinnytsia city to invA grade

21.06.2016
IBI-Rating informs on upgrading of the rating of investment attractiveness of Vinnytsia city to invA grade (high investment attractiveness).

Upgrading of the credit rating of investment attractiveness of Vinnytsia city was due to the expanded city boundaries by 1.6 times by territories of village councils, which are located outside settled areas, providing additional opportunities for expansion of the existing and attracting new productions, investments, as well as actions of the local authorities on creating conditions for doing business. Also, upgrading of the rating of investment attractiveness of Vinnytsia city is due to importance of the city as a regional center of Ukraine, its favourable geographic and natural and climatic conditions, as well as loyal environmental legislation with a minimum number of restrictions, which provide the city with competitive advantages and create significant opportunities for investors. In 2015 the activity of foreign investors was not high, as compared with 2014, and was accompanied by a decline in FDI. At the same time, the volume of capital investments increased by 1.4 times, which in per capita terms remains higher than the national average, the volume of industrial output sold increased by 1.6 times, which in per capita terms is close to the average value in Ukraine.

The investment climate created in Vinnytsia is characterized by support of the regional authorities, consolidation of branches of the local authorities, implementation of investment attracting promotion programs, programs of qualification improvement of local professionals, budget filling measures and profitable operations of the city enterprises, etc. The city authorities take measures on improving the city infrastructure and renewal of fixed assets. The city has certain additional capabilities in the financial market due to the moderate debt burden on the local budget. At the same time, the local authorities have no significant levers to provide benefits to investors. The city is inherent in sufficient provision of health care and educational establishments given the typical for the state prevalence in number of humanitarian and economic universities over technical universities.

A positive impact on the rating of investment attractiveness may have, as follows: improved regulatory framework and successful implementation of the basic programs of the city development, deshadowing of the economy and increase in most indicators to the national level, improved state of the infrastructure. A negative impact on the rating of investment attractiveness may have, as follows: further wear of the infrastructure, decreased performance indicators of enterprises and reduced investment volumes.

In order to perform the analytical research the materials provided by Vinnytsia city, were used, including: annual treasury statements for 2015, target indicators of social and economic development and the city budget for 2015, statistical data, other necessary internal information, as well as the information from the public sources, which the rating agency considers reliable.

Department of municipal ratings area
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua