Fitch: Ukraine's IMF Deal Positive, Major Challenges Remain | Reuters:
"LONDON, March 28 (Fitch) The announcement of a staff-level agreement for a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) supports Ukraine's credit profile, Fitch Ratings says. It increases the likelihood of the sovereign gaining access to external financing. It may also spur structural reforms that reduce imbalances and address Ukraine's twin deficits. However, there are significant risks to implementing the programme in light of the continuing geopolitical risk in the region and the possibility of a further escalation of the crisis, and the domestic political and economic situation following the fall of Viktor Yanukovych's government and the the incorporation of Crimea into the Russian Federation. Failure to take unpopular measures has seen previous IMF agreements suspended, and structural reform will be a long-term process. The scale of the challenges facing Ukraine is reflected in our 'CCC' foreign-currency sovereign rating, which denotes substantial credit risk."
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