Ukraine's 'B+/B' ratings placed on negative watch - S&P

10:36, 16 October 2008
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`The creditwatch placements reflect our concerns..."

Standard & Poor`s Ratings Services placed the `B+/B` foreign currency and `BB-/B` local currency sovereign credit ratings on Ukraine on negative watch, Thomson Financial reported.

The rating agency said the action was taken pending further clarification of the government`s strategy in addressing the intensifying stresses in Ukraine`s financial sector, which could require capital injections from the government.

`The creditwatch placements reflect our concerns over the impact of a deteriorating economic situation and associated exchange-rate depreciation on the country`s financial sector asset quality,` S&P said.

S&P also said it will assess these potential fiscal costs and the impact of weakened growth prospects on the budgetary position of the government.

It added that it expects to resolve the watch placement this month, as terms of the IMF deal and any associated foreign currency funding become clear.

Thomson Financial via Hemscott

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