Moody’s hacks Ukraine rating

Moody's Investors Service said it downgraded Ukraine's foreign- and domestic-currency long-term issuer ratings and foreign-currency senior unsecured debt ratings to Caa2 from B3. The ratings remain on review for further downgrade.

“The two-notch downgrade of Ukraine's ratings and the decision to maintain the ratings on review for further downgrade were triggered by the intensification of Russia's (B3 review for downgrade) military invasion of Ukraine. The ongoing review was initially triggered on Feb. 25, by the start of Russia's military invasion of Ukraine,” Moody’s said in a press release. Since this rating was published, the agency cut Russia’s ratings to Ca.

“The intensification of the military invasion of Ukraine could have implications for sovereign debt repayments. Moody's believes Ukraine's buffers and forthcoming substantial international financial support will not be sufficient to fully offset liquidity risks stemming from Ukraine's debt repayment needs, given the large economic and fiscal costs the invasion will inflict on the country,” the agency said.

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