Moody’s lifts Ukraine to Caa2

Moody's Investors Service said it upgraded Ukraine's local and foreign currency issuer and senior unsecured ratings to Caa2 from Caa3, and changed the outlook to positive from stable.

Consequently, the agency upgraded the ratings of Ukraine's nine senior unsecured eurobonds issued in the context of the government's debt exchange operation in November 2015 to Caa2 from Caa3.

At the same time, Moody's affirmed the Ca senior unsecured rating of the government's $3 billion bond sold to Russia in December 2013. The bond is currently in default.

Moody's also upgraded the backed long-term foreign-currency issuer rating of Financing of Infrastructural Projects (Fininpro) to Caa2 from Caa3, and changed the outlook to positive from stable. Fininpro's debt is fully guaranteed by the Ukrainian government.

The agency said the upgrade was driven by the impact of structural reforms already undertaken in the natural gas sector, public procurement system, taxation and banking sector and those still to be implemented, including pension reform, which together are expected to improve government debt dynamics.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.