On Friday Standard & Poor’s issued a statement saying that the political crisis in Ukraine will not adversely negative influence on the country’s sovereign credit rating. Nonetheless the agency continues “to carefully watch the development of the situation which may lower the country’s creditworthiness”.
“High political risks and instability had always been the key factors which are accounted for in Ukraine’s rating that currently stands at B+ level,” S&P credit analyst Konrad Reuss was quoted as saying. He added that analysis was complicated by the polarization of political views.
S & P reckons the improvement of external liquidity and the decline in the level of state debt, coupled with relatively stable economic development, counterbalance the high political risks in Ukraine. “The ratings forecast may be changed if the deadlock political situation does not resolve itself or if the growing dissent of the population has negative consequences on Ukraine’s macroeconomic situation,” says Reuss.