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            Moody's Cuts Ukraine Credit Rating on Negative Forecast

   by VOA News

   Moody's Investors Service cut Ukraine's credit rating to its
   second-lowest level Tuesday, while warning that creditors faced deep
   losses in debt-restructuring negotiations with bondholders.

   A statement from the credit rating agency said default on repayment of
   $40 billion in aid from the International Monetary Fund was "virtually"
   certain, as Kyiv continues preliminary talks on restructuring the
   majority of its outstanding eurobonds.

   Ukraine, mired in a costly and deadly yearlong conflict with
   pro-Russian rebels near the Russian border, is seeking to cut about $15
   billion from its debt-servicing costs over four years, as part of the
   IMF aid approved earlier this month.

   Moody's said its negative outlook reflected its expectation that
   Ukraine's government debt and external debt levels would remain high,
   despite debt restructuring and ongoing economic reforms.

   Ukrainian Finance Minister Natalie Jaresko told Bloomberg on Tuesday
   that Ukraine's economy had shrunk as much as 10 percent in the first
   quarter. She also said the insurgency had drawn down international
   reserves to a record $5.62 billion in February.
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References

   1. http://www.voanews.com/content/moody-cuts-ukraine-credit-rating/2693476.html