Moody’s downgrades Ukraine to “Caa3” on debt uncertainty
11:39 JST, May 21, 2022
Moody’s on Friday downgraded Ukraine’s foreign currency sovereign credit rating to “Caa3” from “Caa2,” with a negative outlook, citing increased risks to the government’s “debt sustainability” following Russia’s invasion.
“While Ukraine is benefiting from large commitments of international financial support, helping to mitigate immediate liquidity risks, the resulting significant rise in government debt is likely to prove unsustainable over the medium term,” the ratings agency said.
The agency, which earlier kept the country’s outlook under review, revised it due to uncertainty around the evolution of the war and credit implications associated with it.
The Group of Seven’s financial leaders agreed on $9.5 billion in new aid to Ukraine on Friday and promised enough money to keep the country’s devastated economy afloat as long as it fights against Russia’s invasion.
Moody’s said it expects the military conflict in Ukraine to be more prolonged than initially assumed and forecasts the country’s real gross domestic product to shrink by about 35% in 2022.
The agency expects the Ukrainian economy to start a recovery from 2023, but expects Russia’s invasion to cause a permanent damage to the country’s GDP.
"News Services" POPULAR ARTICLE
-
Dollar Edges Lower, Yen at 34-year Trough
-
A Strong Earthquake Shakes Taiwan, Damaging Buildings and Causing a Tsunami
-
Taiwan’s Strongest Earthquake in 25 Years Kills Seven, Traps 77 (UPDATE 2)
-
Iranian Consulate in Damascus Flattened in Suspected Israeli Air Strike
-
Japan’s Nikkei Climbs 1.5% as Investors Scoop Up Beaten-Down Stocks (Update 1)
JN ACCESS RANKING
- M6.0 Earthquake Hits Japan’s Tohoku Region; Fukushima, Iwate, Miyagi Prefectures Observe 4 on Japanese Scale With No Risk of Tsunami
- Cherry Blossoms Draw Crowd to Tokyo’s Ueno Park; Viewing Season Kicks Off to Slow Start
- China Mutes Memorialization of Reformer Hu Yaobang; Memories Could Spark Critique of Xi Administration
- Shinkansen Services Suspended After Man ‘Searches for Phone’ on Tracks; Disruption Affects About 14,000 Passengers
- Whaling Mother Ship Built in Japan for 1st Time in 73 Years