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Fitch downgrades Kiev, Moody’s downgrades Russia and Ukraine’s ratings

In a statement, Fitch said it had downgraded Ukraine’s long-term sovereign debt rating by one notch from B to CCC because “the Russian military invasion has increased risks to Ukraine’s external and public finances, its financial stability and political stability.”

She also referred to the “uncertainty” surrounding “the scope of Russia’s ultimate goals, the duration and intensity of the conflict, and its consequences.”

The agency did not specify what the prospects for these debts are in the future, which reflects the risk of Ukraine defaulting on its debts.

“The invasion represents a severe negative shock to a broad range of key credit metrics,” Fitch stressed.

In turn, Moody’s credit rating agency announced, on Friday, that it will begin a review process to decide on the basis of which it will downgrade its debt ratings on Russia and Ukraine.

Moody’s said in a statement that the Ukrainian sovereign debt mark may be lowered due to the consequences of the invasion, while the possible downgrading of the Russian debt mark is due to the severe sanctions imposed by the West on Moscow following its invasion of Ukraine.

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