© Reuters. FILE PHOTO: The S&P Global logo is displayed at its offices in the Financial District in New York, U.S., December 13, 2018. REUTERS/Brendan McDermid//File Photo
(Reuters) – Credit rating agency S&P said on Friday it had downgraded Ukraine’s long-term sovereign credit ratings in foreign and local currencies from “B-” to “B”, citing risks to economic growth and financial stability of the country due to the Russian invasion.
S&P said https:// that it could downgrade further if the uncertainty posed by the crisis persists and leads to a drain on Ukraine’s external liquidity, its financial system or the government’s administrative capacity.
Russia’s military attack on the country has added significant downside risks to Ukraine’s economic outlook, and disruptions in its governance could put commercial debt servicing at risk, the rating agency said. .
The negative economic effects of the conflict are difficult to quantify at this stage, but will weigh on Ukraine’s creditworthiness, S&P added.
S&P’s move follows that of ratings agency Fitch, which previously downgraded Ukraine’s sovereign rating by three notches, pushing it deeper into undesirable territory, while Moody’s (NYSE:) reviewed his rating for downgrading.
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