// 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
Cryptocurrency fever seems to have spread to the former Soviet republics with Armenia, the land of Mount Ararat, being one of them.
Armenia’s exports grew 25% in 2017 against 2016 to amount $2,242 billion overall, the National Statistical Service reveals.
Fitch Ratings affirmed the sovereign's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B+'.
Armenia's economy is expected to expand by 5.8% in 2017 and grow further by 3.8% and 3.6% in the following two years, the UN said.
Partner news