It is reported that Fitch the international rating agency affirmed Ukraine long term foreign and local currency Issuer Default Ratings at ‘B' with a negative outlook.
As per report, the short term foreign currency IDR and the country ceiling rating are affirmed at ‘B'. The main positive factors of the rating confirmation were the redemption of Ukraine Eurobonds in August and September 2009 and a relatively low government debt to GDP ratio of Ukraine. Still, negative outlook was maintained due to unsatisfactory government policy, resulting in a low probability of receipt of the fourth tranche of the IMF loan.
According to Millennium capital analyst “We see the news to be neutral, which should not affect the price of CDS of the domestic issuers. At the same time, we agree on low probability of the IMF loan provision, since the main Fund requirements to cut down the State Budget Deficit are currently far from being fulfilled.”
(Sourced from Millennium capital)
