S&P confirms Kyiv rating at `B-`

S&P Global Ratings has affirmed the long-term credit rating of the Ukrainian capital City of Kyiv at the level of `B-` with a stable outlook, according to the agency`s website.
In 2017-2019, Kyiv`s strong budgetary performance and solid cash position will counterbalance institutional uncertainties and the potential crystallization of contingent liabilities, the report said.
”Kyiv has accumulated a significant amount of cash reserves. However, despite an extremely strong cash position, we believe that the city`s access to external liquidity remains uncertain,” the agency said.
S&P believes that the level of Kyiv`s contingent liabilities is high owing to accumulated payables at the level of the city`s utility companies and expects that the city might provide help by increasing subsidies or capital.
The agency also includes in the city`s contingent liabilities US$101 million relating to the remaining amount of the Eurobonds which the city hasn`t yet restructured.
”Although the city will have to meet these obligations, we believe that the payments won`t materially impact the city`s liquidity position,” the report said.
Earlier, on May 12, 2017, S&P Global Ratings affirmed its `B-/B` long- and short-term foreign and local currency sovereign credit ratings on Ukraine with the stable outlook.

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