The military threat from Russia negatively affects Ukraine's ratings.
The international rating agency Fitch Ratings downgraded the outlook for Ukraine's long-term issuer default rating (IDR) in foreign currency from «positive» to «stable». It was fixed at the level of «B», reports the Chronicle.info with reference to Channel 24.
It is noted that expectations of a longer period of escalation of tensions with Russia, increased risk of conflict, limited financing conditions, moderate capital outflows and weakening international reserves have increased the risks of external financing since the previous review in August.
«There is a high degree of uncertainty about President Putin's immediate strategic goals, and the increased risk of invasion reflects a long period of troop build-up along the Ukrainian border, weak prospects for agreement on key Russian demands, and heightened U.S. preparatory response»,& #8212; the message says.
Fitch Ratings also notes that the outlook is «stable» partly reflects the agency’s baseline scenario, according to which a full-scale military conflict with Russia will be avoided, and Ukraine’s somewhat greater access to IFI and bilateral funding, together with macro stability, strengthening fiscal and foreign exchange reserves, will mitigate the consequences of the current situation in 2022.
«However, we expect an extended period of heightened tension and risk, and see a slightly higher likelihood of more limited military operations such as in the Donbas», — clarifies the agency.
Recall that in November 2021, the international rating agency Fitch Ratings stated that the military threat from Russia negatively affects the ratings of Ukraine. However, the agency did not expect a significant deterioration in the situation.