LONDON, Feb 8 (Reuters) - An escalation of the conflict with Russia would hurt Ukraine’s credit rating, S&P Global said on Tuesday, while the impact of severe sanctions on Russia and its banks was likely to be moderate, at lease initially.
“The significant escalation of the current geopolitical conflict could present a major shock,” a new report from S&P said, referring to Ukraine’s economy.
An “extreme” situation which triggered a slump in the economy, caused disruptions to infrastructure and exports and triggered fiscal pressures and financial instability “could put pressure on the sovereign (rating).”
On Russia it said potential sanctions, such as a complete ban on Russian sovereign debt trading, “could push up the government’s implicit financing costs but their impact on fiscal and macroeconomic stability will initially likely be moderate.” (Reporting by Marc Jones; Editing by Mark Porter)
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