Ukraine: S&P downgraded Ukraine's rating by one notch to B (negative outlook)

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.

Ukraine: the government resignation - and substantial reshuffle ahead

Ukraine: the government resignation - and substantial reshuffle ahead

In Ukraine, the president accepted the resignation of PM Azarov, which means resignation of his cabinet. This event was very expected and following to the parliamentary elections. However, now we expect quite substantial reshuffle of the cabinet and new figures to be recruited to the government. First of all, it was widely announced that the ministers who were elected to the Rada are planning to work there. This implicitly means that politically charismatic ministers such as Vice PM Sergei Tigipko, the minister of justice Alexander Lavrinovich, minister of economy Petr Poroshenko, minister of emergency Victor Baloga, minister of transportation Boris Kolesnikov, minister of regions Anatoly Blyznyuk and minister of sport Dmitry Tabachnik are likely to become a new parlament deputies.