S&P lifts Lviv to positive

Standard & Poor's said it revised the outlook on the Ukrainian city of Lviv to positive from stable.

The CCC+ long-term issuer credit rating and uaBB Ukraine national scale rating were affirmed, along with the CCC+ and uaBB ratings on Lviv's senior unsecured bond.

The recovery rating is unchanged at 4, indicating 30% to 50% expected default recovery.

The ratings reflect Lviv's low financial flexibility within Ukraine's volatile and underfunded system of interbudgetary relations, S&P said, and ongoing expenditure pressures.

Additional constraints are the city's very negative liquidity, the need to support its utility companies and low wealth levels in an international context, the agency said.

Lviv's modest debt service and debt and its importance as one of western Ukraine's commercial centers offset these negative factors, S&P said.

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