Fitch cuts Ukraine to 'B-'

Yesterday Fitch Ratings downgraded Ukraine’s long-term foreign and local currency issuer default ratings from ‘B’ to ‘B-‘; outlooks on the ratings are negative. The agency maintained the country’s short-term foreign currency IDR at ‘B’. Fitch said the move was related to the effective disruption in Ukraine’s IMF program, which materially increased risks to fiscal financing, macroeconomic stability and creditworthiness. As a result of the lowering in the country ceiling, Fitch also announced downgrades to the long-term foreign and local currency ratings of municipal issuers city of Kyiv, city of Odesa and city of Kharkiv from ‘B’ to ‘B-‘. Fitch also cut the long-term IDRs of nine Ukrainian banks, including long-term foreign currency IDRs from ‘B’ to ‘B-‘: Ukrsibbank, Ukrsotsbank, Bank Forum, ProCredit Bank Ukraine, Pravex Bank, VTB Bank Ukraine, Oshchadbank, Ukreximbank and Privatbank.