2022-05-23T15:20:00+03:00 Economy 2024-09-15T07:17:43+03:00

Ukrainian news

Moody's Downwards Ukraine's Rating From Caa2 To Caa3

Moody's Downwards Ukraine's Rating From Caa2 To Caa3

The Moody's international rating agency downwards the long-term ratings of the government of Ukraine in foreign and national currencies, as well as ratings of senior unsecured debt in foreign currency from Caa2 to Caa3.

The agency has said this in a statement, Ukrainian News Agency reports.

As noted, the downgrade is due to increased risks to the sustainability of Ukraine's public debt due to the invasion of Russia, which is heading for a more protracted military conflict than Moody's initially expected.

This increases the likelihood of debt restructuring and losses for private creditors.

Moody's also changed the rating outlook to negative and noted that this review for a possible downgrade, which began on February 25, 2022, is completed.

Moody's adds that the negative outlook reflects a high degree of uncertainty about how the invasion will play out and what its credit implications will be.

A more protracted military conflict after the Russian invasion will maintain very high funding requirements for an extended period and lead to a further increase in the debt burden.

As Ukrainian News Agency reported, according to the classification of the rating agency, debt obligations with a Caa rating are considered very low quality and subject to very high credit risk.

The head of the International Monetary Fund (IMF) said the organization will revise its forecast for global economic growth downward amid Russia's war against Ukraine, the consequences of which will affect the downgrade of 143 economies this year.