Tuesday 8 October 2013

RPT-Fitch: Ukraine's external finances are key weakness for rating | Reuters

RPT-Fitch: Ukraine's external finances are key weakness for rating | Reuters:

"The continued pressure on Ukraine's FX reserves and a fall in the price of its sovereign debt highlight the risk posed by its weak external finances, Fitch Ratings says. Ukraine has one of the lowest external liquidity ratios among 'B' rated sovereigns and this is a key credit weakness.

A re-pricing of Ukrainian sovereign risk that saw yields on 10-year dollar-denominated bonds move above 10% at the end of September will make rolling over external public sector borrowing more difficult. The need to meet external debt repayments has already contributed to another fall in reserves, which dropped by USD1.1bn in August, to USD21.7bn, pushing them further below three months of imports. In September, reserves were relatively stable, at USD21.6bn. The government borrowed USD750m in a two-year syndicated loan. However, we expect gross international reserves to continue to fall."

'via Blog this'

No comments:

Post a Comment