News: Vinnytsia Holds Positions in Investment Attraction Rating at a Level of INVA+
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Vinnytsia Holds Positions in Investment Attraction Rating at a Level of INVA+

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Currently, the National Rating Agency ІВІ-Rating reports that the credit rating of Vinnytsia is uaA with the “stable outlook” and the investment attractiveness rating at invA+. As it is noted in the agency, such rating levels reflect the high investment attractiveness and high ability of the city to pay for its obligations. In general, most indicators of the economy and economic complex of the city (including per capita) exceed the average data nationwide.

According to IBI-Rating, the rating updates took into account the structure of the city economic complex and the dynamics of key indicators. Vinnytsia has a diversified economy, which ensures stable budget revenues. In the first half of 2019, there was a further increase in a number of indicators of socioeconomic development in comparison to the corresponding period of the previous year: the volume of industrial production increased by 17.1% to 17.4 billion UAH, disbursed capital investments - by 31.3% to 2, 3 billion UAH; retail trade turnover - by 22.9% to 4.7 billion UAH, foreign trade turnover - by 7.7% to $ 718.8 million; the volume of construction works - almost three times to 3.4 billion UAH.

The competitive advantages and disadvantages of other cities in the country have been taken into account. Key authorities of the region are localized in Vinnytsia. According to the report of the rating agency ІВІ-Rating, the city has good logistics, a large number of various specialized educational institutions, and a well-developed servicing, municipal and social infrastructure.

The competition for business and the cost of labor forces are lower than in 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 the local authorities, have a positive effect on the investment climate in the region, as well as on the economic, personnel and social potential of the city.

The financial policy performance and budget indicators were taken into account when updating the rating. In the first half of 2019, the total revenues to the budget of Vinnytsia amounted to 2.4 billion UAH (which corresponds to the indicator of the corresponding period of the previous year), and the share of own revenues increased significantly (to 64.1%) in their structure.

The latter ones consist of 85% tax revenue, which are diversified by payers and branches. It ensures the relative stability and predictability of budget revenues. The level of fiscal capacity continues to exceed the average data nationwide and amounted to 4.3 thousand UAH in the first half of 2019.

The data from the city, including socioeconomic development indicators, statistics, treasury reports, program materials, other necessary insider information, as well as public source information that the Rating Agency considers to be reliable, have been used for the analytical study.