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IBI-Rating confirmed the credit rating of Odessa at uaA level with forecast «stable»
13:54 / 01.12.2016

Odessa, 01 DECEMBER 2016, CONTEXT-Prichernomorie Rating Agency IBI-Rating announced the credit rating of Odessa at the level of uaA with forecast «stable», the correspondent of IA «Context-Prichernomorie» reports.

It was reported to the agency today, December 01, in the Department of Information of the Odessa City Council.

The affirmed credit rating of Odessa due to the importance of the city as an economic centre of the southern part of Ukraine, diversification of the economic complex, the preservation of high indicators of socio-economic development, part of which equals or exceeds the average values in the country per capita.

IBI-Rating note that the urban development of Odessa in the first half of 2016 continued to be influenced by political instability in Ukraine. In these circumstances, on the background of growth of average monthly wages has been a decline in population and the average number of full-time employees.

The economic complex of the city continues to show a gradual recovery after a recession in 2014-2015: the rate of industrial production, development of capital investments, commissioning of housing has significantly exceeded the average values for the country.

This trend has allowed the city to increase budget revenues, improve the diversification of revenues and to support the increased budgetary provision at a level that exceeds the average level in the country.

In the first half of 2016, the volume of revenues the city of Odessa increased compared to the same period of the previous year by 35.2% and amounted to 3 billion 570.6 mln UAH, of which own revenues have increased by 1.5 times up to 2 billion 173.1 million UAH. This contributed to the increase in the tax (+51.0%) and non-tax revenues (+35.7%), revenues from operations with capital (in 4.4 times) and official transfers (+14.7 %). The city's budget reduced surplus in the amount of 781.7 million UAH. That is 2.1 times more than in the same period of 2015. Accordingly, the total liquidity increased by 12.8 p. p. and amounted to 28.9%, which is the highest value.

City continues to work with financial institutions, including international, and to pay the loan, the proceeds of which are directed to the development of urban infrastructure. Consolidated city's debt has increased by 0.03% in the first half of 2016 (due to the devaluation of the hryvnia) and on 07.01.2016 totaled 1 billion 236.5 million UAH, its ratio to the revenue side of the budget for 2016 (without excluding transfers) amounted to 39.3%, which is an acceptable figure.

On the city's credit rating may affect positively: the further growth of the revenue part of the budget of Odessa, the excess of all-Ukrainian indicators of socio-economic development; reduction in consolidated debt. Negative credit rating can affect: deterioration in performance of budget revenues, reduced liquidity, growth of debt, further deterioration of the political or economic situation in Ukraine or in the region, as well as deterioration in the debt market or restricting access to it from the municipalities.

For the analytical study used materials obtained from city of Odessa, including: the annual Treasury reporting, indicators of socio-economic development and city budget, other necessary internal information and information from open sources that Rating Agency considers reliable.