The rating outlook is negative
Rating agency Standard & Poor's Ratings Services downgraded the credit rating of Ukraine to the level of «CCC +» in the escalation of political conflict in the country. Rating notes the vulnerability of the issuer, performing the financial obligations of which depends on favorable business, financial and economic conditions. Despite the downgrade, analysts believe that the country is not threatened with the credit crises. However, the rating may be lowered.
In December 2013, rating agency has assigned Ukraine with credit rating «B-», thus confirming the solvency of the issuer, which may be limited due to unfavorable economic conditions. Largely the decision of rating agency was determined by a credit of $ 15 billion, which Russia has allocated for Ukraine. However, as the situation in the country is deteriorating, the company has revised its forecasts.
The report of the Standard & Poor’s said that according to the criteria of the agency they recorded a crisis of civil society in Ukraine, the weakening of political institutions, and to reducing the government's ability to implement timely payment of debts.
Political unrest in Ukraine was caused by a sharp rejection of President Viktor Yanukovych to sign an association agreement with the EU in November 2013.
At present, it is unclear how events will develop. Escalation of political instability could lead to a further deterioration in the rating.
