Fitch affirms Kyiv

Fitch Ratings said it affirmed the City of Kyiv's long-term foreign- and local-currency ratings at B+, short-term foreign-currency rating at B and national long-term rating at AA+(ukr).

The outlook for the national rating is stable, and the outlook for the remaining ratings is negative.

The agency said the ratings factor in the risk of economic instability, which negatively impacts the city's public finances. Further negative factors include Kyiv's weak budget process, unstable institutional framework, political uncertainty and exposure to foreign-exchange risk due to its direct debt being denominated in dollars.

However, the ratings also reflect the city's sound budgetary performance and stable growth of tax revenues buoyed by the strength of the local service-oriented economy, Fitch said.

© 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.