According to the information released by rating agency in London, credit rating of Ukraine was lowered to CCC+ with outlook set to “negative” and long-term currency grade at B-. The downgrade was partially attributed to an ongoing political instability in the country, and partially to resignation of Ukraine’s Prime Minister Mykola Azarov as well as the rest of Cabinet of Ministers.

“The next step is decrease of credit ratings for major companies, including agrarian sector leaders”, - as stated by financial analyst of UkrAgroConsult, Alex Morgun. Latest events suggest that global rating agencies tightly connect country rating and rating of large companies within the given country, which is natural, given the fact that macroeconomic risks are generally high for investors within the CIS region. 2014 might be another year characterized by scarcity of external funding for Ukrainian agrarian companies.

Author: Alex Morgun, Financial analyst, UkrAgroConsult