Fitch Ratings downgrades Ukraine’s outlook to stable

Read in Google News!

Fitch Ratings has revised the Outlook on Ukraine’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Positive and affirmed the IDR at ‘B’.

“The revision of Ukraine’s Outlook to Stable reflects the significant impact of the COVID-19 pandemic… The heightened macroeconomic and fiscal risks associated with this unprecedented global shock will partially reverse Ukraine’s improvements in recent years in terms of a declining debt burden, the normalisation of growth prospects after the 2014-2015 geopolitical and economic crises, and reduced growth volatility,” Fitch said.

Fitch also forecasts the economy will contract by 6.5% in 2020, compared with 3.2% growth in 2019, reflecting the COVID-19 pandemic shock to the global economy, containment measures, and a weaker currency affecting investment and private consumption. Consumption will be further hindered by the expected decline in household remittances (7.8% of GDP in 2019).

Читай у Google News!