Moody's drops Ukraine from B1 to B2

Yesterday Moody’s Investors Service downgraded Ukraine’s foreign and local currency debt ratings from B1 to B2, with a negative outlook. The agency said the move reflects concern about the stability of the Ukrainian economy and banking system. In its rationale, Moody’s also cited uncertainty over strict capital controls to ration foreign currency, which Alfa Bank Ukraine cited as one of the causes for a late payment on its USD 100 mln Eurobonds last week.