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S&P Cuts Ukrainian Sovereign Credit Rating

Business Materials 24 October 2008 17:49 (UTC +04:00)

Ukraine, Kiev, 24 October / Trend , corr. Z.Novosvitskiy /The international Standard & Poor's rating company has cut the sovereign credit rating in Ukraine: on liabilities of foreign currency from B+ to B and from BB- to B+ on liabilities in national currency.

The rating went down from uaAA to uaA+ with 'negative' forecast. The short-term sovereign credit rating is approved of B rate. The sovereign rating of likehood to pay debt after default is on the 4 rate.

Furthermore, the transformation risk assessment and currency conversion for Ukrainian non-sovereign borrowers had been cut from BB- to B+.

The liability rating of foreign and national currency, as well as rating on the national scale were excluded from the CreditWatch list with a negative forecast.

"The decrease of ratings is caused by growing expenditure of the Ukrainian Government related to the necessity to re-capitalize the banking system in the state of decline of the economic growth and strengthening of currency risks," is stated referring to Frenklin Gill, credit analyst in the Standard & Poor's company.

On 17 October, the international Fitch rating cuts  the long-term issuer default rating (IDR) in foreign and national currency from ВВ-  to В+, while keeping the 'negative' forecast unchanged. The agency also decreased the rating of country limit from ВВ-  to В+. The short-term IDR in foreign country is approved on В rate.

The correspondent can be contacted at: [email protected]

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