Fitch Revises City of Kyiv's Outlook to Negative; Affirms 'B-'

Mon Nov 18, 2013 11:34am EST

Link to Fitch Ratings' Report: City of Kyiv - Rating Action ReportMOSCOW, November 18 (Fitch) Fitch Ratings has revised the Outlook on Ukraine's City of Kyiv's Long-term foreign and local currency ratings to Negative from Stable. The agency also affirmed Kyiv's Long-term foreign and local currency ratings at 'B-'. Fitch has also downgraded the city's National Long-term rating to 'BBB(ukr)' from 'BBB+(ukr)'. The Outlook on the National Long-term rating is Negative. Its Short-term foreign currency rating was affirmed at 'B'. Kyiv's outstanding senior unsecured eurobonds totalling USD550m (US225407AA34, US50154TAA34, XS0644750027 and XS0233620235) were affirmed at 'B-'. Its domestic bonds totalling UAH5.4bn (UA4000142707, UA4000142715, UA4000142723, UA4000142731, UA4000142749 and UA4000142884) were downgraded to 'BBB(ukr)' from 'BBB+(ukr)' and affirmed at 'B-'. KEY RATING DRIVERS This rating actions follow the downgrade of Ukraine's Issuer Default Rating (IDR) to 'B-' from 'B' (see 'Fitch Downgrades Ukraine to 'B-'; Outlook Negative' dated 8 November 2013 at www.fitchratings.com). The City of Kyiv's Outlook has been revised to Negative because under Fitch's 'International Local and Regional Governments Rating Criteria outside United States' local and regional governments cannot be rated above the sovereign. Affirmation of the city's Long-term foreign and local currency ratings reflects Kyiv's status as Ukraine's political, economic, and financial capital. RATING SENSITIVITIES A further downgrade could result from any downgrade of Ukraine's sovereign ratings, adverse changes to the institutional framework or weakening of the budgetary performance leading to a significant deterioration in the city's debt position. The ratings could be positively affected by Ukraine's Outlook being revised to Stable or by an upgrade of the sovereign, accompanied by an improvement in the financial position of the city. Contact: Primary Analyst Konstantin Anglichanov Director +7 495 956 99 94 Fitch Ratings CIS Ltd 26 Valovaya Street Moscow 115054 Secondary Analyst Behruz Ismailov Associate Director +7 495 956 99 80 Committee Chairperson Guilhem Costes Senior Director +34 93 323 8410 Media Relations: Julia Belskaya von Tell, Moscow, Tel: +7 495 956 9908, Email: julia.belskayavontell@fitchratings.com; Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available at www.fitchratings.com Applicable criteria 'Tax-Supported Rating Criteria' dated 14 August 2012, 'International Local and Regional Governments Rating Criteria outside United States' dated 9 April 2013 and 'Rating of Public Sector Entities Outside the United States' dated 4 march 2013 are available at www.fitchratings.com. Applicable Criteria andALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.