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IBI-Rating has affirmed the ratings of Kramatorsk and updated the city's investment passport
20.12.2019
National rating agency IBI-Rating informs on affirming of the credit rating of Kramatorsk city at uaВВВ+ grade, with a «stable» outlook and the rating of investment attractiveness at invВВВ grade.
Such ratings grades represent the city’s sufficient ability to pay off its financial commitments and sufficient investment attractiveness. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months. The grade uaВВВВ+ corresponds to the investment level of a credit rating.
The main factors which had an impact on the affirming of the rating were:
1. The structure of the economic complex of the city
The Kramatorsk city has a moderately diversified economy and its basis is a powerful industrial complex, which consisting of engineering and metallurgy enterprises. The city is characterized by low unemployment and the absence of wage arrears.
2. Competitive advantages in comparison with other cities of the country
Kramatorsk is the administrative, business, economic and logistics center of the Donetsk region. Significant human resources are localized in the city, as well as a large domestic market: almost 190 ths people live on the territory of Kramatorsk city council, of whom 3/4 are economically active population. In addition, the city has a significant number of diverse educational institutions. Also, in retrospect 2016-2019 there is a positive trend in the development of infrastructure and public spaces, improving the quality of the urban environment.
3. The effectiveness of financial policies and budget indicators
According to the results of 9 months of 2019, total revenues of Kramatorsk city budget amounted to UAH 1.57 billion, of which 58% were own revenues. In the analyzed period, the city budget was surplus and its liquidity increased from the beginning of the year. At least 10% of the city budget goes to finance development projects (capital expenditures and transfers). At the same time, given the localization of educational and medical institutions in the city, the larger part of the city budget is send to financing protected and fixed expenses. At the same time, given the functioning in the city council of a significant number of educational and medical institutions, the larger half of the city budget is directed to financing protected and fixed expenses. Against the background of the growth of the city's economy, the sensitivity of budget revenues from the activities of individual enterprises and the implementation of the state budget policy still remains. At the same time, the low debt burden on the revenue side of the budget allows the city authorities to attract additional financing, including on the development of infrastructure projects.
«The growth of some economic indicators has been registered for the third year in a row. All this results were positively evaluated by experts. IBI-Rating agency has affirmed the credit rating of Kramatorsk city - this is certainly a powerful argument for investors. Our goal is to consolidate these positive trends and transform Kramatorsk into a city which is convenient for people's living and attractive for doing business», - stressed out City Mayor of Kramatorsk Andrii Pankov.
Also, the updated Investment passport of Kramatorsk was published on the city council website. The document was developed jointly with the experts of the IBI-Rating Agency, taking into account the best European practices. The passport makes it possible to present the investment potential of Kramatorsk and will become an effective instrument for establishing business contacts with potential investors. In addition to general information about the Kramatorsk city and indicators of the development of the economy of the municipality, the publication also collected and structured information on: investment opportunities, competitive advantages, transport connections, human resources potential, taxes, connection to networks, non-residential real estate fund, socio-cultural development of the city, quality of life and etc.
«The information in the passport is structured in such a way that it is easier for the investor to assess the merits and potential of Kramatorsk. Among other things, the service infrastructure is extremely important for a businessman - the presence of banking institutions, the work of courier services and distribution networks, the provision of administrative services, etc. To assess the quality of life of the investor and his staff, information on schools, hospitals, kindergartens and the environment is also concentrated here», - Director of the Project Management Department of IBI-Rating Victor Shulik noted.
The array of information in the passport are presented through infographics, which makes it possible to visually show the correlation of facts, as well as to quickly look through the content. You can get more detailed information in a particular area by going to URLs by scanning QR-codes. Thus, in 15 minutes a potential investor will be able to discover Kramatorsk without seeing the city. The brochure is compiled in Ukrainian and English and focused on domestic and foreign investors. Now the document is in the public domain on the websites of the Kramatorsk City Council and the IBI-Rating agency.
Municipal department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
Such ratings grades represent the city’s sufficient ability to pay off its financial commitments and sufficient investment attractiveness. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months. The grade uaВВВВ+ corresponds to the investment level of a credit rating.
The main factors which had an impact on the affirming of the rating were:
1. The structure of the economic complex of the city
The Kramatorsk city has a moderately diversified economy and its basis is a powerful industrial complex, which consisting of engineering and metallurgy enterprises. The city is characterized by low unemployment and the absence of wage arrears.
2. Competitive advantages in comparison with other cities of the country
Kramatorsk is the administrative, business, economic and logistics center of the Donetsk region. Significant human resources are localized in the city, as well as a large domestic market: almost 190 ths people live on the territory of Kramatorsk city council, of whom 3/4 are economically active population. In addition, the city has a significant number of diverse educational institutions. Also, in retrospect 2016-2019 there is a positive trend in the development of infrastructure and public spaces, improving the quality of the urban environment.
3. The effectiveness of financial policies and budget indicators
According to the results of 9 months of 2019, total revenues of Kramatorsk city budget amounted to UAH 1.57 billion, of which 58% were own revenues. In the analyzed period, the city budget was surplus and its liquidity increased from the beginning of the year. At least 10% of the city budget goes to finance development projects (capital expenditures and transfers). At the same time, given the localization of educational and medical institutions in the city, the larger part of the city budget is send to financing protected and fixed expenses. At the same time, given the functioning in the city council of a significant number of educational and medical institutions, the larger half of the city budget is directed to financing protected and fixed expenses. Against the background of the growth of the city's economy, the sensitivity of budget revenues from the activities of individual enterprises and the implementation of the state budget policy still remains. At the same time, the low debt burden on the revenue side of the budget allows the city authorities to attract additional financing, including on the development of infrastructure projects.
«The growth of some economic indicators has been registered for the third year in a row. All this results were positively evaluated by experts. IBI-Rating agency has affirmed the credit rating of Kramatorsk city - this is certainly a powerful argument for investors. Our goal is to consolidate these positive trends and transform Kramatorsk into a city which is convenient for people's living and attractive for doing business», - stressed out City Mayor of Kramatorsk Andrii Pankov.
Also, the updated Investment passport of Kramatorsk was published on the city council website. The document was developed jointly with the experts of the IBI-Rating Agency, taking into account the best European practices. The passport makes it possible to present the investment potential of Kramatorsk and will become an effective instrument for establishing business contacts with potential investors. In addition to general information about the Kramatorsk city and indicators of the development of the economy of the municipality, the publication also collected and structured information on: investment opportunities, competitive advantages, transport connections, human resources potential, taxes, connection to networks, non-residential real estate fund, socio-cultural development of the city, quality of life and etc.
«The information in the passport is structured in such a way that it is easier for the investor to assess the merits and potential of Kramatorsk. Among other things, the service infrastructure is extremely important for a businessman - the presence of banking institutions, the work of courier services and distribution networks, the provision of administrative services, etc. To assess the quality of life of the investor and his staff, information on schools, hospitals, kindergartens and the environment is also concentrated here», - Director of the Project Management Department of IBI-Rating Victor Shulik noted.
The array of information in the passport are presented through infographics, which makes it possible to visually show the correlation of facts, as well as to quickly look through the content. You can get more detailed information in a particular area by going to URLs by scanning QR-codes. Thus, in 15 minutes a potential investor will be able to discover Kramatorsk without seeing the city. The brochure is compiled in Ukrainian and English and focused on domestic and foreign investors. Now the document is in the public domain on the websites of the Kramatorsk City Council and the IBI-Rating agency.
| Kramatorsk INVESTMENT OVERVIEW |
Municipal department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua