Standard & Poor's Ratings Services on April 17, 2015, affirmed its 'CCC-' long-term issuer credit rating on the Ukrainian city of Lviv.

The outlook remains negative, S&P said in a statement.

At the same time, the rating agency affirmed its 'uaCCC-' Ukraine national scale rating on Lviv. The affirmation reflects the agency's view that, despite the downgrade of Ukraine on April 10, 2015, Lviv has no debt.

Nevertheless, S&P says it has revised its assessment of Lviv's stand-alone credit profile (SACP) to 'ccc-' from 'b-' because, in its view, Lviv's access to the central government's treasury could be restricted if the sovereign were to default. This risk led S&P to apply a 100% haircut to city's cash reserves, which are held at the central treasury. The long-term rating on Lviv is therefore now at the same level as its SACP.

The ratings on Lviv reflect Ukraine's very volatile and underfunded institutional framework, and the rating agency's view of the city's economy and budgetary flexibility as very weak. Furthermore, the agency views Lviv's liquidity and financial management as weak. Lviv has high contingent liabilities related to its municipal utilities, which also constrain its creditworthiness. On the positive side, it considers Lviv to have strong budgetary performance and low debt.