Standard & Poor’s downgraded Kiev and Crimea ratings
Having downgraded the rating of Ukraine, international rating agency Standard & Poor’s followed the trend with Crimea and Kiev. The news was reported on the agency’s website.
Specifically, the ratings are downgraded from B- to CCC+, with «negative» outlook. The downgrade comes amid continuing unrest and political instability in Ukraine.
At the same time, S&P affirmed Lvov rating at CCC+, changing the outlook from «stable» to «negative».
On January 28, the agency downgraded the long- and short-term sovereign credit ratings on Ukraine form B-/B to CCC+/C. The outlook is «negative».
According to the agency, a major escalation of political instability in Ukraine could force Russia to suspend its $15bn financial support package.
«If Yanukovych lose power, be it by removal from the office or as a result of early Presidential elections, and if diplomatic relations with Russia deteriorate, the $15 billion financial assistance to the Ukrainian government from Russia would be jeopardized,» note S&P analysts.
The «negative» outlook means there is a chance of even lower long-term credit rating of Ukraine within the next 12 months.