Advertisement

S&P cuts Ukraine's credit rating as violence continues

The agency downgraded the credit rating of the country citing continued violence and the government's increasing inability to service its debt.

By Ananth Baliga
Downtown Kiev burns as anti-government protesters clash with the Ukrainian riot police at a barricade on February 19, 2014. At least 25 people have been killed in the worst violence since Ukraine gained its independence in 1991. UPI/Ivan Vakolenko
Downtown Kiev burns as anti-government protesters clash with the Ukrainian riot police at a barricade on February 19, 2014. At least 25 people have been killed in the worst violence since Ukraine gained its independence in 1991. UPI/Ivan Vakolenko | License Photo

KIEV, Ukraine, Feb. 21 (UPI) -- Credit rating agency S&P downgrades Ukraine's rating following continued unrest and violent clashes between the government and protestors in Kiev.

The agency cut the country's long-term foreign currency rating from CCC+ to CCC, citing their doubts about the govenrment's ability to service its debt amid the turmoil. The S&P have also given the country a negative outlook, possibly suggesting further downgrades.

Advertisement

"We believe [the current situation] raises uncertainty regarding the continued provision of Russian financial support over the course of 2014, and puts the government's capability to meet debt service at increasing risk," the agency said in a statement.

Another setback was the cancellation of the country's plans to raise $2 billion by issuing five-year eurobonds. Ukraine's finance minister announced that the bond issue -- which they had hoped would be bought by Russia -- would not go ahead.

Protests started last November, when Ukrainian President Viktor Yanukovych's government rejected an accord with the European Union, in favor of better relations with Russia. The Russians had promised Ukraine financial assistance and cheaper energy prices.

[MarketWatch] [BBC]

Advertisement

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement