Fitch Downgraded Rating of Ukraine from ВВ- to В
OREANDA-NEWS On 21 October was announced, that Fitch international rating agency downgraded the long-term rating of Ukraine for liabilities in foreign and local currency to В+ (before: ВВ-). The rating outlook is still negative. The short-term rating of Ukraine for liabilities in foreign currency is confirmed at B level.
Following the country rating downgrade, the agency also downgraded to negative the ratings of Kyiv, Odesa and Kharkiv, as well as of Naftogas of Ukraine and DTEK.
Fitch explains the ratings downgrading by significant weakening of the local currency, further tension in the banking system and significant damage from the financial crisis to the real sector.
We would like to note, that according to the Fitch scale, the B group ratings mean credit risks with limited strength reserve.
At the same time we would like to remind the reader that Standard&Poor's agency also admits possible downgrading of Ukraine’s ratings, as well as the number of its cities, banks and Azovstal steelmaker (PFTS: AZST).