IBI-Rating informs on upgrading of the rating of investment attractiveness of Ternopil city from invВВВ+ to invА- grade (high investment attractiveness).
The upgrading of the rating is due to sustainable growth of most of the main indicators of social and economic development of Ternopil city, most of which have been either equal to or have exceeded the average values in the country per capita, as well as stable social and demographic situation in the city. An increase in the amount of funds aimed at improving the city’s infrastructure and their expected growth in the future is noted, as well as actions of the local authorities for the introduction of modern payment and navigation systems in public transport.
At the same time, the grade of the rating of investment attractiveness of Ternopil city is due to its importance as a regional center. Its favourable geographical location, natural and climatic conditions given the existing loyal environmental legislation and no significant environmental problems create additional opportunities for investors.
The implementation of measures to increase the level of management culture in the city and to improve the investment climate, along with the coordination of actions of representatives of the local authorities in solving key issues of the city life, create significant potential for further growth of indicators of economic development in a number of sectors of the economy. However, these opportunities are constrained by infrastructural problems related to deterioration of the city economy facilities.
The volume of investments in the local economy in 2016 demonstrated positive dynamics; an increase in investments from the local budget had a certain impact on that. The indicator of assimilated capital investments per capita increased by 1.3 times to the amount of UAH 8.7thou, exceeding by 14% the average indicator for Ukraine. The volume of foreign direct investments grew by 14.4% to the amount of USD 15.1m and in per capita terms remained below the national average value, indicating low activity of foreign investors.
Low debt burden on the local budget allows the city to take part in joint investment projects, which, inter alia, are implemented with loan funds of international financial institutions, with which the city has a positive experience of cooperation.
The city is inherent in good provision with establishments of health care, education and culture, there are also historical and cultural heritage objects. There is potential of an increase in number of urban residents due to the inflow of population from the regions, as well as a positive natural increase.
A positive impact on the rating may have, as follows: improvement of the regulatory framework and successful implementation of the basic programs of the city development, an increase in most indicators of the social and economic development to the national level, improved state of the infrastructure. A negative impact on the rating may have, as follows: further obsolescence of the infrastructure, detection of complaints by investors on activities of the local authorities, decline in performance indicators of enterprises and reduction in investment volumes.
In order to conduct the analytical research the materials obtained from Ternopil city have been used, including: treasury statements for 2016, data on the implementation of the program of the city social and economic development and the city budget in 2016, statistics data, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.