Fitch intends to review the ratings of Ukraine

1 November 2013 16:11  2949832 050593
Fitch intends to review the ratings of Ukraine

The international rating agency Fitch intends to review the ratings of Ukraine.

This was announced during a conference of the Fitch Ratings by the director on European markets Charles Saville, the "Ukrainian News" reported.

"Yes, we will (soon) review the ratings of Ukraine. However, I can not say when it will happen," - he said.

Saville said that in late October, experts of the rating agency held talks with the Ukrainian authorities to clarify the issues required in terms of the implementation of the rating assessment.

"This week we have visited Ukraine not only for the conference but also for official visits. On this basis, we may soon review the rating of the country," - he added.

The Fitch representative refused to specify what kind of rating may be involved (increase or decrease).

"We had a lot of questions about Ukraine and we wanted to get answers to them" - Saville said.

Currently, Ukraine has a B long-term and short-term ratings.

In accordance with the scale of Fitch, the B group ratings mean the presence of certain credit risk with a limited margin of safety.

Recall that in July of this year, Fitch Ratings downgraded the forecast for Ukraine from "stable" to "negative."

As you know, Fitch expects depreciation of the hryvnia to 8.5 per dollar and decrease of international reserves of the NBU to 12.9 billion dollars in 2014.

According to Fitch, current account balance of Ukraine in 2013 will be negative at 7.3% of GDP, and in 2014 it will also be negative - at 6.2% of GDP.

The total debt of Ukraine by the end of 2013 will have amounted to 35.7% of the GDP, by the end of 2014 - 41.6% of the GDP.

As previously reported, Fitch Ratings expects the economic growth in Ukraine at 0.5-1% in 2013 and 2.3% in 2014.

Experts of the agency also consider that further depreciation of Ukrainian hryvnia is possible to 8.5 per dollar at the end of 2013 and to 9 per dollar at the end of 2014.

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