Moody’s: Outlook for Ukrainian banks still negative

Moody’s Investors Service said in a note yesterday that the fundamental credit outlook for the Ukrainian banking sector is still negative. Moody’s said the outlook reflected the vulnerable state of credit fundamentals of domestic banks in the mid-term amid the ongoing economic crisis. Moody’s particular concerns related to downward pressure on banks’ capitalization and profitability and on their liquidity. The agency also noted political uncertainty and potential currency volatility as adding to risks in the banks’ operating environment.