: :inin Kyiv (EET)

S&P upgrades Kyiv to `B-` on domestic bond repayment, outlook stable

On November 24, 2016, S&P Global Ratings raised its long-term issuer credit rating on the Ukrainian capital City of Kyiv to `B-` from `CC`. The outlook is stable.

”Contrary to our previous base-case expectations, the city of Kyiv has redeemed ahead of schedule Ukrainian hryvnia (UAH) 1.9 billion of G series domestic bonds maturing on December 6, 2016,” S&P said in a report.

”We view Ukraine`s institutional framework for local governments as very volatile and underfunded. This continues to limit the city`s budgetary flexibility, which we assess as very weak. Our view of Kyiv`s very weak financial management and less than adequate liquidity, as well as high contingent liabilities, also constrains the ratings. We view the city`s economy as weak although diversified. The ratings are supported by our assessment of the city`s average budgetary performance and low debt burden,” the report reads.


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