Fitch revises Ukraine outlook to negative, affirms B rating

PanARMENIAN.Net - Fitch Ratings has affirmed Ukraine’s long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘B’ and revised the outlooks on the ratings to negative from stable, the ratings agency reported Friday, June 28, according to RIA Novosti.

Fitch also affirmed the short-term IDR at ‘B’ and the country ceiling at ‘B’.

The outlook’s revision “reflects an increasingly fragile external financing position, the likelihood that international reserves will decline further as Ukraine faces a heavy external debt repayment schedule through 2014, and greater challenges in borrowing on international capital markets,” the agency said.

Besides, Fitch does not expect Ukraine to reach a deal with the International Monetary Fund in 2013, whereas raising funds from alternative sources, it said, would be difficult.