"Contrary to our previous base-case expectations, the city of Kyiv has redeemed ahead of schedule Ukrainian hryvnia (UAH) 1.9 billion of G series domestic bonds maturing on December 6, 2016," S&P said in a report.
Read alsoFitch upgrades 7 Ukrainian banks on sovereign rating change"We view Ukraine's institutional framework for local governments as very volatile and underfunded. This continues to limit the city's budgetary flexibility, which we assess as very weak. Our view of Kyiv's very weak financial management and less than adequate liquidity, as well as high contingent liabilities, also constrains the ratings. We view the city's economy as weak although diversified. The ratings are supported by our assessment of the city's average budgetary performance and low debt burden," the report reads.
