OREANDA-NEWS. On 16 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it upgraded to uaBBB+ (uaBBB plus) from uaBBB the long-term credit rating assigned to the City of Brovary (`city`). The outlook on the rating is stable. To revise the rating Credit-Rating considered city`s social-economic and financial indicators for 2007 as well as other inside information furnished by the city council.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating

The high growth rates of incomes to the budget`s general fund excluding transfers: the amount of gains in 2007 exceeds 76.9% that of the year-earlier budget.

High budget`s liquidity: as of Jan. 1, 2008 the leftovers of funds (including funds placed on deposits) account for 11.5% of the actual expenditures of the budget`s general fund in 2007, and for 17.2% of the special fund.

The city council does not have a direct debt as of Jan. 1, 2008.

The city`s indicators of investment activity grew in 2007: the fixed capital investments increased by 80.1% to UAH818.8m, which, calculated per capita, is 2.2x higher than the country`s average; the foreign direct investments soared by 35.8% to USD79.3m, which, calculated per capita is 35.5% higher than the country`s average; the volume of homes delivered grew by 28.2% to 85.5K sq.m., which, calculated per 1000 inhabitants, is 4.2x higher than the country`s average.

The city`s social development indicators have improved in 2007: the average salary grew by 31.8% to UAH1,464.0, which is 8.4% higher than the country`s average, accompanied by zero arrears; the number of employees (exclusive of small businesses) and low registered unemployment of 0.9%, which is lower than the country`s average of 2.4%.

Factors constraining the credit rating

Up to 30 per cent of the City`s labour force outflow to the city of Kiev, which cuts down budget gains from individuals` tax accompanied by retained burden on budget expenditures.

High deterioration of city`s fixed assets, including the housing sector and city`s engineering and transport infrastructure, which requires significant investment for their renovation.