WASHINGTON: Rating firm Moody’s again lowered Ukraine’s credit rating by a notch on Friday, citing the “escalation” of its political crisis, and put the country on a “negative” outlook for further downgrades.
Moody’s Investors Service pushed the country’s rating deeper into speculative territory, to “Caa3” from “Caa2” — a one-notch move matching the rating firm’s prior downgrade in January.
Three factors which underlie Ukraine’s longstanding economic and fiscal fragility drove the downgrade, the rating firm said.
The first was “the escalation of Ukraine’s political crisis as reflected by the recent regime change in Kiev as well as the annexation of Crimea by Russia,” it said, noting that Russia, rated Baa1, is being reviewed for a downgrade. The second was
the country’s strained external liquidity. AFP
