S&P cuts seven Ukrainian cities

Standard & Poor's said it lowered the long-term issuer credit ratings on Kyiv, Lviv, Dnipropetrovsk, Ivano-Frankivsk, Lugansk, Odessa and the Crimea to CCC+ from B and removed them from CreditWatch following the downgrade of the sovereign rating on Ukraine to CCC+/C.

The outlook remains negative. Ratings had been placed on CreditWatch with negative implications on Feb. 16.

"All seven LRGs are in the same rating category, constrained by their very high dependence on sovereign decisions regarding their revenue and expenditure responsibilities and their exposure to central budget transfers," S&P analyst Boris Kopeykin said in a statement.

"However, zero to only modest debt-service payments scheduled for 2009-2010 bolster their creditworthiness."

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