YEREVAN, April 10. /ARKA/. Moody’s Investors Service downgraded Ukraine’s government bond rating to Caa3 from Caa2 with negative outlook, citing an escalating political crisis and stressed external liquidity position after Russia withdrew financial support.
The escalation of economic sanctions by Russia, with increases in gas price and potential trade restrictions, would further hurt Ukraine’s economic outlook, Moody’s said.
Ukraine on Friday said it was in emergency talks with European Union neighbors on the possibility of importing natural gas from the West, following a leap in the price it pays for Russian supplies.
“Ukraine’s short-term external liquidity pressures have been exacerbated by the suspension of Russia’s support package,” Moody’s said. –0–
