S&P may downgrade Kyiv’s long-term rating

Yesterday Standard & Poor’s announced that it put City of Kyiv long-term issuer credit rating and senior unsecured debt rating (currently at CCC+) on CreditWatch with negative implications. According to the rating agency’s press-release “this move reflects Kyiv’s increased exposure to short-term debt resulting from the city’s relatively unexpected decision to attract two bank loans to repay its energy bills. We could lower the rating if the city sticks to the risky policy of attracting short-term debt during the current year and/or the central government is reluctant to explicitly and unambiguously confirm its financial support”.