Fitch cuts Kyiv, Odessa, Kharkov

Fitch Ratings said it downgraded the long-term foreign- and local-currency ratings of Ukraine's city of Kyiv, the city of Odessa and the city of Kharkov.

Kyiv's long-term foreign- and local-currency ratings are downgraded to B from B+ with negative outlook and national long-term rating to AA(ukr) from AA+(ukr). Its short-term foreign-currency rating is affirmed at B and the outlook is stable. The action affects the city's three outstanding eurobonds totaling $700 million.

Odessa's long-term foreign- and local-currency ratings are downgraded to B from B+ with negative outlook. Its short-term foreign-currency rating is affirmed at B and national long-term rating at AA-(ukr) with stable outlook.

Kharkov's long-term foreign- and local-currency ratings are downgraded to B from B+ with negative outlook. Its short-term foreign-currency rating is affirmed at B and national long-term rating at AA-(ukr) with stable outlook.

The downgrade follows the downgrade of Ukraine's long-term foreign- and local-currency issuer default ratings to B from B+ due to the increased risk of a banking and currency crisis in Ukraine caused by intensified stress on the financial system, Fitch said.

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