Main » Events » Press conferences » Bond issue by city of Lutsk assigned uaBBB+. Press-conference |
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Bond issue by city of Lutsk assigned uaBBB+. Press-conference11.06.2007 uaBBB+ long-term credit rating to 3-year UAH10m bond issue by city of Lutsk. The journalists’ questions were answered by Credit-Rating CEO Stanislav Dubko and Lutsk Mayor Bohdan Shiba. ‘The city’s indicators are high even being compared to other big cities, which are the agency’s clients’- Mr. Dubko said opening the conference. According to Credit-Rating CEO, such indicators as volumes of output and of sales of industrial production, investments into fixed capital, direct foreign investments, retail turnover exceed those averages of Ukraine, with this factor having a significant impact on the rating assigned. Among other positive factors were mentioned the following: positive dynamics in city’s key indicators of social development in 2004-2006 (the natural growth of population, increase in number of employees entailed by decrease in unemployment rates), growth of budget revenues resulting in 28.6% reduction in the leveling subsidies from the State budget in 2007, the null in city’s direct debt as of Jan. 1, 2007 entailed by its moderate growth during 2007. ‘The budget revenues are growing entailed by proportional decline in the volume of subsidies’ – Mr. Dubko said. Among the factors constraining the credit rating, Mr. Dubko noted the following: city’s dependency on official transfers from the State budget; modest salary level (according to January-November 2006 data it was 11.1% lower than that average of Ukraine), high concentration of industrial production sales on two Lutsk-based companies – Lutsk Automobile Plant OJSC and SKF Ukraine OJSC, and a traditional problem for major of Ukrainian cities of high level of deterioration of main funds, including utility facilities, and necessity in capital investments into city’s infrastructure.
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