// IP Marketing video - START// IP Marketing video - END

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
Mountea, an Armenian company producing tea from the mountain herbs has begun to export its products to Russia.
20,149 optical-mechanical devices were manufactured in the reporting period against the 3,388 produced in the same period last year.
Yandex and Uber said they will join forces in the six countries to create a new company operating in some 127 cities.
“A more efficient and reliable energy distribution network is important for economic growth in Armenia”, - said Sonali Tang.
Partner news