Moody's cuts outlook on Ukraine on global turmoil

14:54, 20 October 2008
Ukraine
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Moody`s became the latest credit ratings agency to take action on Ukraine

Moody`s became the latest credit ratings agency to take action on Ukraine on Monday, cutting its sovereign outlook as it said global market turmoil was making the country more vulnerable.

Moody`s (nyse: MCO - news - people ) said it was cutting the outlook on Ukraine to stable from positive and maintaining its current B1 rating. Fellow ratings agency Fitch cut Ukraine`s sovereign rating on Friday, citing concerns over its increasingly troubled banking sector.

`There has already been speculation against the local currency, with its attendant adverse effects for inflation, debt servicing and the asset quality of the banking sector as the majority of foreign currency borrowings are on-lent in foreign currency denominated loans,` said Moody`s vice president Jonathan Schiffer.

Ukraine is currently in talks with the International Monetary Fund for what officials suggest could be a deal of between $10-14 billion.

Reuters via Forbes
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