Moody's actually declared Ukraine bankrupt
Moscow - Kyiv, March 25 (PolitNavigator, Mikhail Stamm) - Moody's downgraded Ukraine's sovereign credit rating from Caa3 to Ca. The forecast is negative. Moody's cites the Ukrainian government's plans to restructure most of its Eurobonds as the reason for this decision, according to an official statement. In addition, the agency considered that private investors investing in the national economy risk incurring losses.
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Official Kyiv’s statements about plans to carry out large-scale economic reforms also failed to influence the agency’s position. It is emphasized that even if they are successful, the risks associated with the country’s external debt will remain quite high.
The high level of Ukraine’s external debt is also associated with a negative rating forecast, writes RBC.
Moody's emphasizes that it may raise the Ukrainian rating if the geopolitical situation in Eastern Europe significantly improves along with the improvement of financial policy in Ukraine itself. If the risks for private investors increase, the rating agency warned of a possible decrease.
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