Country news

International Rating Agency Moody's Investors Service has today announced the placement of Ukraine's sovereign ratings on review for possible upgrade.

The ratings placed on review include the foreign-currency ceilings for bonds and bank deposits, which are Ba3 and B2, respectively, and the B1 foreign- and local-currency government bond ratings. Since November 2006, these ratings have carried a positive outlook.

The Baa1 local currency country ceiling and A3 bank deposit ceiling are affirmed with a stable outlook. Also unaffected are the short-term country ceilings at Not Prime.

According to Moody’s Vice President Jonathan Schiffer, “The current government is adopting reasonable and largely affordable macroeconomic policies…” Schiffer also said that a prudent fiscal stance would build on a strong track record accompanied by improving public debt ratios and reduced external vulnerability. He also expects that the country's recent acceptance, and eventual accession, to the WTO will provide a stimulus to economic development going forward.

Schiffer noted that Ukrainian politics remain fiercely contested, but that Moody's no longer perceives a change of government as a harbinger of wholesale shifts in political or economic direction nor a threat to macroeconomic stability.

Full article can be viewed at http://www.moodys.com