16.01.2020

The National rating agency IBI-Rating informed on affirming of the credit rating of Vinnytsia city at invA+ grade, keeping the «stable» outlook and the rating of investment attractiveness at invA+ grade. The Agency note that such rating grades represent the high investment attractiveness and strong ability of the city to pay off its financial commitments. In general, most indicators of the economy and the economic complex of the city (including in terms of per capita) exceed the average data for the country.

According to IBI-Rating, the structure of the economic complex of the city and the dynamics of its key indicators were considered while updating ratings. Vinnytsia has a diversified economy, which ensures stable revenues to the budget. In the first half of 2019, against the corresponding period of the previous year, there was a further growth in a number of indicators of socio-economic development: the industrial products sold grew by 17.1% to UAH 17.4 billion, the disbursed capital investment rose by 31.3% to UAH 2.3 billion; retail trade turnover – by 22.9% to UAH 4.7 billion, foreign trade turnover – by 7.7% to USD 718.8 million, the volume of construction work completed – almost in three times to UAH 3.4 billion.

The competitive advantages and disadvantages in comparison with other cities of the country were considered. In Vinnytsia, the key state authorities of the region are localized. In addition, the city has good logistics, a significant number of different profiles educational institutions, developed service, utility and social infrastructure.

Business competition and labor resources price are lower compared to the capital. At the same time, the active involvement of local and foreign investments, as well as the policy of maximum transparency in relation to business by local authorities, has a positive effect on the investment climate in the region, as well as on the economic, labor and social potential of the city.

Financial policy efficiency and the budget indicators were considered while updating ratings. In the first half of 2019, the total revenues to the budget of Vinnytsia amounted to UAH 2.4 billion (which corresponds to the indicator of the corresponding period of the previous year), and in their structure the share of own revenues increased significantly (to 64.1%). The share of tax revenues in the structure of the city budget was 85%; such revenues are diversified by payers and industries. It ensures relative stability and predictability of the budget revenues. The level of fiscal security continues to exceed the national average and in the first half of 2019 amounted to UAH 4.3 thousand.

In order to conduct the analytical research, the materials obtained from Vinnytsia city have been used, including: indicators of the social and economic development, statistical data, treasury statements, program materials, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.