Fitch downgrades Ukraine's credit rating, cites political instability

Fitch downgrades Ukraine's credit rating, cites political instability

PanARMENIAN.Net - Fitch downgraded Ukraine's long-term foreign currency Issuer Default Rating (IDR) to 'CCC' from 'B-', citing political instability in the country, Reuters reported.

Ukraine is struggling to prop up its currency amid a political crisis with anti-government demonstrators taking to the streets to protest against a move closer to Moscow's economic orbit. A debt crisis has left the country on the verge of bankruptcy.

"The financial system remains fragile, burdened by non-performing loans of 30 percent, and represents a contingent liability to the sovereign...," Fitch Ratings said.

Fitch said the falling reserves, a weak outlook for its currency and reducing prospects of Ukraine's access to external funding undermine its debt servicing ability.

Fitch ratings also cut the country's short-term foreign currency IDR to 'C' from 'B'.

Russia suspended a $15 billion bailout last week after President Viktor Yanukovich, in a concession to protesters, sacked the pro-Russian prime minister.

Ukraine's central bank on Thursday, Feb 6 introduced restrictions on certain types of foreign exchange purchase to help defend the stability of its banking system.

The hryvnia fell below 9 per dollar on Wednesday for the first time in five years. It traded at 8.53/8.56 against the dollar on Friday at 1430 GMT.

Related links:
 Top stories
Ameria’s management staff, partners and public agencies, as well as local and int’l organizations are participating in the Oct 14-15 master classes.
In 2014, Ameriabank expanded its range of retail services with new offers, also providing more flexible and transparent terms of service.
Since 2010 the EBRD, EIB and EU have contributed a total of €30 million for the improvements carried out in two phases.
NCFA said its participation in this major exhibition aims to promote Armenia’s tourism opportunities at the European markets.
Partner news