Fitch worsens Outlooks for Ukrzaliznytsia, state-run banks, Khariv and Odesa cities
Fitch Ratings has revised the Outlooks on two Ukrainian cities Kharkiv and Odesa, State Railway Administration of Ukraine's (Ukrzaliznytsia), Ukraine-based JSC The State Export-Import Bank of Ukraine's (Ukreximbank) and JSC State Savings Bank of Ukraine's (Oschadbank) to Negative from Stable and affirmed their ratings, reads a report of Fitch Ratings published on Tuesday.
The report says that the rating actions follow the revision of the Outlook on the Ukraine 's Issuer Default Rating (IDR) to Negative from Stable on June 28, 2013.
"The revision of the Outlooks on the Long-term IDRs of Ukreximbank and Oschadbank reflect the increased likelihood of a deterioration in the government's ability to provide support in case of need, as reflected in the revision of the Outlooks on the sovereign Long-term IDRs," reads the report.
The revision of the Outlooks reflects the application of Fitch's 'International Local and Regional Governments Rating Criteria outside United States' whereby local and regional governments cannot be rated above the sovereign.
Long-term foreign and local currency ratings of Ukrzaliznytsia are affirmed at 'B-'; and that for the two banks, Kharkiv and Odesa cities at 'B.'