Ukraine Debt Rating Cut by Moody’s Amid Russia Dispute - Bloomberg

Ukraine Debt Rating Cut by Moody’s Amid Russia Dispute - Bloomberg:



"Ukraine’s credit rating was cut by Moody’s Investors Service, which said escalating political tensions and the withdrawal of Russian financial support are weakening the country’s fiscal strength.



Moody’s lowered the rating one level to Caa3, two steps above default, with a negative outlook. The cut takes into account an agreement with the International Monetary Fund to provide “near term liquidity relief,” according to a report published today.



The Russian takeover of Ukraine’s Black Sea Crimean peninsula has reignited Cold War tensions with the U.S. and Europe and rattled financial markets. Ukraine’s debt may rise to the equivalent of 60 percent of its economic output by the end of the year from 40.5 percent in 2013, Moody’s said. It forecast the economy may shrink as much as 10 percent in 2014."



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