Rating agency IBI-Rating informs on upgrading of the rating of investment attractiveness of Vinnytsia city from invA to invA+ grade (high investment attractiveness).
The upgraded grade of the rating of investment attractiveness of Vinnytsia city is due to the stable social and demographic situation in the city, as well as the growth of economic development indicators, most of which exceeding the average national values per capita. A high degree of transparency of the local authorities activity is noted, their actions with regard to improving conditions for doing business and developing of the modern industrial infrastructure, including the creation of Vinnytsia industrial park, as well as an increase in the amounts of funds aimed at improving the city’s infrastructure and their expected growth in the future; the introduction of modern payment systems in the public transport.
At the same time, the grade of the rating of investment attractiveness rating of Vinnytsia city is due to significance of the city as a regional centre. Its favourable geographical location, natural and climatic conditions given the existing loyal environmental legislation and absence of significant environmental problems, create additional opportunities for investors.
The existing investment climate in the city of Vinnytsia is supported by both the regional administration and the local authorities that on an on-going basis implement measures aimed at promoting investment attraction, advanced training of experts, the budget filling and improving the performance of public utilities, etc.
In recent years, volumes of investments in the local economy have demonstrated positive dynamics, to which a certain impact had an increase in investments allocated from the local budget. In 2016, the indicator of assimilated capital investments per capita amounted to UAH 7.7 thousand being comparable to the average indicator for Ukraine. The volume of FDI grew by 13.7% amounting to USD 95.1m, and per capita remains lower than the average Ukrainian indicator, proving low activity of foreign investors.
The city authorities take measures on improving the city infrastructure and renewal of fixed assets, attracting funds from international financial institutions for this purpose. The city has certain additional opportunities in the financial market due to a moderate consolidated debt burden on the local budget.
Vinnytsia city is inherent in good provision with establishments of health care and education given the typical for the state prevalence of humanitarian and economic higher educational establishments over the technical ones.
A positive impact on the rating of investment attractiveness may have, as follows: further improvement of the regulatory framework and successful implementation of the basic programs of the city development, deshadowing of the economy and an increase in most indicators to the state level, improved state of the infrastructure. A negative impact on the rating of investment attractiveness may have, as follows: decline in performance indicators of enterprises and reduced investment volumes, further obsolescence of the infrastructure.
In order to perform the analytical research the materials obtained from Vinnytsia city have been used, including: treasury reporting, target and actual indicators of the city social and economic development and the city budget, statistics data, other necessary internal information, as well as the information from the public sources, which the Rating agency considers reliable.