International agency S & P lowered the credit rating of 4 Ukrainian cities – The Jewish Times

International agency S & P lowered the credit rating of 4 Ukrainian cities – The Jewish Times

Posted 25.12.2014 06:26

The agency Standard & amp; Poor’s downgraded the credit rating of just 4 Ukrainian city.

Analysts of Standard & amp; Poor’s doubts about the solvency of Kiev, Dnipropetrovsk, Lviv and Ivano-Frankivsk. It was therefore decided to downgrade to a level uaCCC-. Thus, because of doubts about the ability of cities to fulfill their obligations credit rating lowered from “stable” to “negative”.

With regard to the rating of Kiev, it greatly influenced the decision of its dependence on central government . While on the other hand, this factor can result from minus to plus due to the fact that the authorities can provide support for Kiev.

December 19 agency downgraded the credit rating of Ukraine and from CCC to SSS-, ie with ” stablilnogo “to” negative. ” Analysts also doubt that in case of default Ukraine will not be able to make international transfers in foreign currency, as well as in terms of restrictions on currency conversion will not be able to demonstrate sufficient liquidity.

Also, Standard & amp; Poor’s gave the estimate budget of Ukraine for 2015 -2016′s. Experts are confident that he will not a big increase. This all happens in the background of revenue growth and cost reductions that are directly related to inflation. In general indicator of the effectiveness of the financial management of Kiev will be weak.

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