The Fitch ratings agency has downgraded Ukraine one step closer to default grade, as the Ukrainian currency the hryvnia hits a record low, and the economy balances on the brink of a collapse.
Fitch cut the long-term local currency Issuer Default Rating (IDR) of Ukraine from B-,signifying a default risk, to CCC, where default is a real possibility, and affirmed its long-term foreign currency IDR at CCC, it said in a statement on Friday.
The downgrade came amid deteriorating economic outlook due to the ongoing military conflict in Ukraine.
“Although the government has recaptured territory from the rebels, conflict may persist or intensify, delaying economic revival and damaging productive assets,” says Fitch’s statement.
The Ukrainian currency has lost 39 percent against the US dollar this year, on Friday reaching an all-time low at 13.7 hryvnia to the dollar. Last week the hryvnia lost 3.1 percent, while in August the currency fell by 9.4 percent.
Complete story at - Ukraine moves step closer to default - Fitch — RT Business
Fitch cut the long-term local currency Issuer Default Rating (IDR) of Ukraine from B-,signifying a default risk, to CCC, where default is a real possibility, and affirmed its long-term foreign currency IDR at CCC, it said in a statement on Friday.
The downgrade came amid deteriorating economic outlook due to the ongoing military conflict in Ukraine.
“Although the government has recaptured territory from the rebels, conflict may persist or intensify, delaying economic revival and damaging productive assets,” says Fitch’s statement.
The Ukrainian currency has lost 39 percent against the US dollar this year, on Friday reaching an all-time low at 13.7 hryvnia to the dollar. Last week the hryvnia lost 3.1 percent, while in August the currency fell by 9.4 percent.
Complete story at - Ukraine moves step closer to default - Fitch — RT Business
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