S&P revises Ukraine's sovereign outlook to stable

Standard & Poor’s, in a statement on Friday, said that it revised Ukraine’s sovereign ratings outlook from positive to stable. The agency, at the same time, affirmed the country’s ‘CCC+/C’ long-term and short-term foreign currency ratings, ‘B-/C’ long-term and short-term local currency ratings, and ‘uaBBB’ national scale rating. S&P said that the change reflects uncertainty about the country’s IMF loan program ahead of the January presidential elections. Specifically, S&P cited hikes to social expenditures, which President Yushchenko signed into law earlier on Friday, would enlarge the budget deficit in 2009 and ran contrary to IMF calls to veto the law.