S&P Lowers Ukraine National Currency Rating

Standard & Poors has maintained Ukraines long-term sovereign rating of B+ in foreign currency, and downgraded the countrys national currency rating one notch from BB- to B.
By None

Standard & Poors has maintained Ukraines long-term sovereign rating of B+ in foreign currency, and downgraded the countrys national currency rating one notch from BB- to B.

The B rating for short-term foreign currency and national currency stayed the same.

Ukraine is in the midst of promising fiscal reforms, which led S&P to set the outlook on the ratings as stable.

However, the ratings were constrained by double-digit inflation, unsustainably high pension spending, political constraints to fiscal consolidation and a significantly leveraged financial sector, with considerable nonperforming loans, custodian SEB said in an alert to clients.

(CG)

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