Rating agency «IBI-Rating» informs on affirming of the credit rating of Sumy city and debt obligation (upcoming bond issue of A series) at uaА- grade, with a «stable» outlook.

The credit rating of Sumy city reflects importance of the city as a regional center, diversification of the city economic complex, contributing to rapid recovery of sources of filling of revenues of the city budget, as well as its growth.

Development of Sumy city in 2015 was influenced by the overall situation in the country. The city, despite the decline in volumes of foreign investments, foreign trade turnover, demonstrated growth of volumes of assimilated capital investments, industrial output sold in monetary terms and housing commissioned.

Measures on decentralization of budgetary relations and delegation to cities of powers on collection of certain state taxes, duties, allowed Sumy city to increase annual revenues to the city budget by 46%, as compared with 2014, including, an increase in tax revenues by 12% and an increase in non-tax revenues by 44%, respectively. Moreover, there was an increase in revenues by most major items.

The indicator of the city budgetary provision continues to exceed the average value of local budgets in Ukraine. High liquidity ratios and low rates of debt burden on the the city budget revenues are observed, as well as increased capital investments in development of the city infrastructure, which is highly obsolete.

A positive impact on the city credit rating may have, as follows: increased of Sumy city budget revenues and improved most indicators of social and economic development of the city per capita. A negative impact on the city credit rating may have, as follows: decreased performance indicators of budget revenues, decreased liquidity, a significant increase in debt obligations, deteriorating situation in the market of borrowings or a limited access to it for municipal formations.

In order to conduct the analytical research the materials provided by Sumy city, have been used, including: indicators of social and economic development, materials of statistical bulletins; annual 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