Ukraine: S&P downgraded Ukraine's rating by one notch to B (negative outlook)
Today S&P downgraded Ukraine's rating by one notch to B (negative outlook). Previously this week, the country's rating was downgraded by Moody's. The main concern is clear: the country is scheduled to redeem USD7.2bn in 2013 while sources of refinancing are still uncertain. We reiterate our call that the new deal with the IMF is essential for financial and economic stability in the short term. We expect more efforts of the government to reach a compromise with the fund. However, the mission visit has been recently postponed to the beginning of 2013 when the new government is supposed to be formed. We maintain our call on economic recession in the coming quarters and hryvnya deval to UAH9 per $ in the near future.
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