In 2017-2019, Kyiv's strong budgetary performance and solid cash position will counterbalance institutional uncertainties and the potential crystallization of contingent liabilities, the report said.

"Kyiv has accumulated a significant amount of cash reserves. However, despite an extremely strong cash position, we believe that the city's access to external liquidity remains uncertain," the agency said.

S&P believes that the level of Kyiv's contingent liabilities is high owing to accumulated payables at the level of the city's utility companies and expects that the city might provide help by increasing subsidies or capital.

The agency also includes in the city's contingent liabilities US$101 million relating to the remaining amount of the Eurobonds which the city hasn't yet restructured.

"Although the city will have to meet these obligations, we believe that the payments won't materially impact the city's liquidity position," the report said.

As UNIAN reported earlier, on May 12, 2017, S&P Global Ratings affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings on Ukraine with the stable outlook.