Fitch Ratings: Ukraine’s Future Financial Situation ‘Stable’
Kyiv and Kharkiv’s ability to repay long-term foreign and local currency denominated financial obligations is stable according to Fitch Ratings, a New York-based credit rating agency.
The affirmation reflects Fitch’s outlook regarding the city’s adequate budgetary performance, although prone to volatility due to ongoing budgetary and tax reforms, and a weak institutional framework for local and regional governments within Ukraine. Fitch cited the unpredictable fiscal changes and the overall weakness of public finances in Ukraine The ratings also factor in reduced direct debt following the debt restructuring, but still high unforeseen liabilities. Fitch gave Kyiv and Kharkiv a B minus stable rating.