Moody’s downgrades Ukraine to “Caa3” on debt uncertainty By Reuters

Home » Blog » Moody’s downgrades Ukraine to “Caa3” on debt uncertainty By Reuters
Moody's downgrades Ukraine to

Moody’s downgrades Ukraine to “Caa3” on debt uncertainty By Reuters

© Reuters. A view shows a car parked outside a building damaged during Ukraine-Russia conflict in the southern port city of Mariupol, Ukraine May 20, 2022. REUTERS/Alexander Ermochenko

(Reuters) – Moody’s (NYSE:) on Friday downgraded Ukraine’s foreign currency sovereign credit rating to “Caa3” from “Caa2”, with a negative outlook, citing increased risks to the government’s “debt sustainability” following Russia’s invasion.

“While Ukraine is benefiting from large commitments of international financial support, helping to mitigate immediate liquidity risks, the resulting significant rise in government debt is likely to prove unsustainable over the medium term,” the ratings agency said.

The agency, which earlier kept the country’s outlook under review, revised it due to uncertainty around the evolution of the war and credit implications associated with it.

The Group of Seven’s financial leaders agreed on $9.5 billion in new aid to Ukraine on Friday and promised enough money to keep the country’s devastated economy afloat as long as it fights against Russia’s invasion.

Moody’s said it expects the military conflict in Ukraine to be more prolonged than initially assumed and forecasts the country’s real gross domestic product (GDP) to shrink by about 35% in 2022.

The agency expects the Ukrainian economy to start a recovery from 2023, but expects Russia’s invasion to cause a permanent damage to the country’s GDP.

Original article

Click here to view the original article


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
On Key

Related Posts

Cisco Time Buy

Cisco Systems: Time To Buy

The bear market is making retail and professional investors nervous, but the market will not be down forever. For those who have lived through the