20 October 2011
Fitch Ratings downgraded its outlook on Ukraine from positive to stable yesterday, according a statement released by the agency. Ukraine’s long-term issuer default rating was affirmed at B. Fitch said the change in outlook follows an increase in sovereign borrowing costs, concerns about external financing and the impact of a forecast slowdown in global growth. The agency previously noted that Ukraine’s combination of exposure to the cyclical steel industry, pegged exchange rate and domestic policy risks make it more vulnerable than most emerging markets to deterioration in external conditions. Fitch said further downward pressure on Ukraine’s rating is possible from renewed pressure on the currency and a shortfall in external financing.