July 28, 2003 |
|Moody's Investors Service today placed Ukraine's B2/B3 foreign currency country ceilings for bonds and bank deposits on review for possible upgrade. Also on review for upgrade are the ratings of bonds issued by the Government of Ukraine. |
Moody's said that the rating review is prompted by Ukraine's solid economic performance and especially by its strengthening external position. Because of the close connections between the Ukrainian and Russian economies, surging growth in the latter has stimulated a sustained upswing in the former. The agency noted that the overall fiscal stance remains tight while tax reforms are being introduced to combat Ukraine's extremely large shadow economy. Moody's rating review will focus on the sustainability of current trends. Key areas for analysis concern political stability, further tax and fiscal reform, the pace of privatization, and strengthening of the financial sector.