S&P lowers Ukraine's local-currency rating to B+ from BB-.

By bne IntelliNews September 14, 2011
The Standard & Poor's Ratings Services has affirmed Ukraines long-term foreign-currency sovereign rating at B+ and lowered the long-term local-currency sovereign rating to B+ from BB-, the agency's press service said in a statement. At the same time, S&P affirmed short-term local and foreign currency ratings at B. The outlook on the ratings is Stable. Additionally, the long-term Ukraine national scale rating was affirmed at uaAA-. According to the statement made by the agency, the transfer and convertibility assessment was maintained at B+, in line with the foreign currency rating, and the recovery rating on the unsecured foreign currency debt was affirmed at 4, indicating our expectation of 30%-50% recovery in the event of a default. The S&P noted that the ratings on Ukraine are constrained by continuous double-digit inflation, unsustainably high pension spending, political constraints to fiscal consolidation, and a significantly leveraged financial sector with considerable nonperforming loans (NPLs). At the same time the agency noted a large commodity endowment and strong growth potential, particularly if the improved fiscal results can be maintained and even strengthened without the crutch of high inflation boosting nominal GDP and revenues.

Related Articles

Metro Ukraine raises sales by 11% y/y to EUR 877mn in 2012.

In 2012, Metro Cash&Carry Ukraine, which is a retail division of the Metro Group (Germany), raised sales by 10.9% y/y to EUR 877mn, the company said. The company opened two new wholesale ... more

NBU: Gross external debt of Ukraine up 2% q/q in Q4/2012

The Naftogaz Ukrainy has repaid UAH 2.4bn worth of loans so far in 2013. The company was able to repay this amount of loans because of economy of natural gas in all areas of its operation, ... more

EC makes new recommendations for Ukraine.

The European Commission recommends Ukraine to focus on meeting its commitments under the association agenda, reads the ENP Country Progress Report 2012 - Ukraine released on Wednesday. In ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss