OREANDA-NEWS  On 02 October was announced, that Fitch international rating agency deteriorated the Ukraine’s ratings outlook from “stable” to “negative”.

The agency has confirmed the long-term ratings of Ukraine in foreign and domestic currency at the level of BB-, short-term rating in foreign currency B and country risk of Ukraine at the level of BB-.

The “negative” outlook points out at Fitch concern about the fact that Ukraine faces the increasing risk of currency crisis stipulated by increment in the deficit of current operations account and deteriorating perspectives in financing area.

According to Fitch forecasts, the negative balance of Ukraine’s current operations account in 2008 will increase to 7% of the GDP, and in 2009 - to 8.5% of the GDP (versus 4.2% in 2007) amid growing deficit of the trade balance.

The analysts at Fitch specified that decomposition of the coalition that formed the government led to the fourth political crisis in Ukraine for four years and left the country without reliable government able to cope with risks being accumulated in the economy.

Meanwhile, the National Bank of Ukraine believes that the aforesaid assessment is absolutely inadequate, since “there is no currency crisis in Ukraine, no pressure on the Ukrainian economy, and no capital flight….” In line with the statement made by Valery Litovetskiy, head of advisors to the NBU, the current macroeconomic situation in Ukraine is controllable and is not a critical one.

We would like to remind the reader that in mid-May Fitch deteriorated the Ukrainian ratings outlook from the “positive" to “stable”.