30 May 2022 17:24

S&P Global Ratings downgrades Ukraine's FX ratings to CCC+/C from B-/B

MOSCOW. May 30 (Interfax) - The international rating agency S&P Global Ratings has downgraded Ukraine's long and short-term foreign currency ratings to CCC+ from B- and to C from B respectively.

Ukrainian media have reported with reference to the agency's statement on its website that S&P assumes "the Ukraine government's capacity to meet its foreign-currency commercial debt payments is contingent on the flow of donor support."

At the same time, S&P affirmed its B-/B local currency and uaBBB- national currency ratings on the premise that the country's hryvnia-denominated government debt is less vulnerable to nonpayment.

The agency removed all ratings from CreditWatch with negative implications and assigned them a negative outlook, reflecting risks to the Ukrainian economy, external balances, public finances, and financial stability, which it believes could undermine the government's ability to meet its debt obligations, the document says.

S&P said it could further lower the ratings within the next 12 months, should the government's liquidity position deteriorate or should it appear that the government might de-prioritize debt service in favor of meeting general budget, defense, and reconstruction spending needs, it said.

On the other hand, the agency said it might revise the outlook to stable if the security situation in Ukraine and its medium-term macroeconomic prospects improve, it said.