OREANDA-NEWS. June 24, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it upgraded to uaA+ (uaA plus) from uaA the long-term credit ratings assigned to the city of Energodar and to its issue of coupon bonds for the amount of UAH10m with 5-year original maturity. The outlook on both ratings is stable. To revise the rating Credit-Rating considered city’s social and economic and financial indicators for 2009 and other information furnished by the city council.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to 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

High growth rates of revenues to the city budget’s general fund (exclusive of transfers) in 2009, with the city’s budget funding retaining at high level as compared to other similar Ukrainian cities (in terms of population and status): the amount of budget receipts calculated per capita was UAH2759.6 in 2009 versus UAH2658.3 in 2008.

High liquidity of the budget combined with its no dependency upon loans from the general treasury account.

No direct debt as at Jan. 1, 2010.

Positive trend in city’s social development in 2009: the monthly average salary increased by 5.1% to UAH3267.2, which is in excess of the national indicator by 1.7 times, with the retaining high specific gravity of the population employed at 41.4%.

Factors constraining the credit rating

The city’s economy is single-oriented combined with high development of the city budget upon performance of Zaporizhzhia Nuclear Power Plant, Energoatom NJSCEC, and Zaporizhzhia Thermal Power Plant of Dneproenergo OJSC, which contributed to over 80% of the city budget.