Standard & Poor's downgraded Kiev and Crimea ratings

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.

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