National rating agency IBI-Rating informs on affirming of the credit rating of Sumy city at uaA- grade, keeping the «stable» outlook and the rating of investment attractiveness at invA- grade.
Such rating grades represent the high investment attractiveness and strong ability of the city to pay off its financial commitments. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months.
The affirmed ratings grade due by keeping the positive dynamics of key indicators of socio-economic development and budget, development of service, communal, social and educational infrastructure. The impact of the negative factors on the financial capacity of the city remains moderate, despite the financial difficulties of some important enterprises of the Sumy economy, preserving the difficult economic situation in the country and continuing the military conflict in eastern Ukraine.
The rating grades are maintained by importance of the city as a regional center, low direct and consolidated debt load on the revenue side of the budget, the continued increase in the volume of revenues to the local budget by almost all major items, as well as high level of budget capacity. At the same time, the city has a significant need for attracting additional funding, including for the restoration of city infrastructure, housing and communal services.
7 key indicators of the Sumy city:
1. Revenues of the city budget in 2017 compared to 2016 increased by 22.0% to UAH 2.87 billion, the highest growth rates demonstrated the own city’s revenues – by 28.4% to UAH 1.46 billion.
2. The level of budget capacity continued to correspond to the average value of the country and in 2017 it amounted to UAH 5.4 thousand, which is by 29% higher than value of the indicator in 2016.
3. As in previous years, the city budget was a donor budget, seeing, transferred the reverse subsidy to the state budget in the amount of UAH 67.2 million, which by 19.1% more than in 2016. The volume of transfers from the state budget makes 49.1% in the total volume of the revenue part of the city budget and was directed at financing social protection expenditures, educational and medical spheres.
4. The city budget (with changes) was executed with a deficit in the amount of UAH 166.97 million, which was covered at the expense of budget balances as at 01.01.2017. Development expenditures (capital expenditures) were directed from the city budget in the amount of UAH 616.41 million, which is one and a half times higher than in the previous budget period.
5. The volume of sales of industrial products in 2017 compared to 2016 increased by 14% to UAH 19.8 billion.
6. The volume of the capital investments amounted to UAH 2.8 billion, which by 36.7% more than the same indicator in 2016.
7. Retail trade turnover in 2017 grew by 6.6% to UAH 5.3 billion.
In order to conduct the analytical research the materials obtained from Sumy city have been used, including: indicators of the social and economic development, statistical data, treasury statements, program materials, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.