Page 49 - UKRRptMay20

8.4 ​International ratings
Ukraine - Rating agency
as of April 27 1, 2020
last change
Moodys (USD rating)
Caa1 (S)
21/12/18
Fitch (USD rating)
B (S)
24/04/20
S&P
B (S)
27/09/19
Fitch Ratings has affirmed Ukraine’s long-term issuer default rating of ‘B,’ downgrading its outlook from “positive” to “stable.” ​The effect of the world recession caused by coronavirus curbs will be mitigated by Ukraine’s low dependence on incoming tourism, a good mix of commodity exports and low oil prices. After a 6.5% fall in GDP this year, Fitch predicts Ukraine will grow by 3.2% in 2021.
Fitch downgrades DTEK Energy to RD on missed payments.​ ​Fitch Ratings has downgraded DTEK Energy's (DTEKUA) Long-Term Foreign Currency Issuer Default Rating (IDR) to RD from C, the agency reported on Apr. 2. ​The second downgrade in a week​ reflects Fitch’s understanding that the company missed its interest and bond coupon payments, due on Mar. 31 and Apr. 1.
S&P Global Ratings downgraded the long-term issuer default rating of Ukrzaliznytsia to the level of CCC from B-, ​the agency said April 10. S&P says the state railroad has one year to pay off $400mn in loans, including $200mn in July. S&P said: “We consider the liquidity of the company as weak, because we believe that the problems associated with COVID-19 may limit access to capital markets and affect the ability to generate cash flow from operating activities.
8.5 ​Fixed income
NBU Council allows central bank to buy state bonds​ ​The Council of the National Bank of Ukraine (NBU) removed on March 31 a restriction on the NBU on purchasing local government bonds, the ​finclub.net​ news site reported on April 2, citing a council resolution. The ban was introduced in July 2018. The council also recommended the NBU board “to create preconditions for easing the consequences of economic recession and preserving price and financial stability.” In particular, the council recommended the NBU board to determine the amount of the possible purchase of local bonds on the secondary market that won’t affect financial stability. It also recommended the government to liberalize the primary market to allow non-banking institutions to purchase the bonds at state auctions.​ ​At the same time, NBU board member Oleh Churiy told an April 3 press briefing that the regulator has no plans to purchase local bonds.
Ukraine's finance ministry has decided against holding auctions on the placement of government domestic loan bonds​, based on the results of consultations with primary dealers on the impact of the coronavirus (COVID-19) pandemic on the economy, Interfax Ukraine reported on April 7. "Further auctions will be carried out in accordance with the schedule, taking into account demand and market conditions," the ministry said in a statement. In mid-March, primary auctions were also cancelled. Over the last few months, the finance ministry has been going through a rocky period, with its third
49​ UKRAINE Country Report​ May 2020 ​ ​www.intellinews.com