Fitch: Governance key in Russia, Kazakhstan, Ukraine

Fitch Ratings said it said in a special report that corporate governance is considered an integral part of rating Russian, Kazakh and Ukrainian corporates.

Weak corporate governance may constrain the rating of a company regardless of how strong its financial profile is, Fitch said, and recent improvements tend to have been driven primarily by international listing and funding requirements.

The current global economic crisis has refocused attention on corporate governance, as its failure with regard to poor risk management and limited transparency is considered to be one of the contributing factors, the agency said.

Within the three countries, Russia appears to have achieved more advanced corporate governance, with Kazakhstan following suit, whereas governance standards in Ukraine still are at an early stage of development, the agency said.

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