Traders Concerned by Kiev Debt Burden | Business | The Moscow Times:
"Ukraine has muddled its way through several debt crises in the past, but investors and traders are concerned that default may finally be round the corner as the country's finances deteriorate and its relations with Russia worsen.
When it was downgraded to Caa1 from B3 by Moody's on September 20, it gained the dubious honor of joining the "Triple C" club alongside Cuba, Ecuador, Egypt and Pakistan.
Some observers, however, are playing down the risk of default, saying the country could still find a way to make its debt payments, which amount to more than $10 billion in hard currency in the coming year.
"Fears of default and devaluation in Ukraine are almost seasonal in nature and usually peak at the end of Q3 or beginning of Q4 and get forgotten as the winter holidays approach," said Peter Attard Montalto and Dmitri Petrov, analysts at Nomura. The actual risk of default is still only moderate, they said."
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