Standard & Poor's Ratings Services on January 30, 2014, lowered its long-term issuer credit rating on Ukraine's capital City of Kyiv to 'CCC+' from 'B-', S&P said in a statement.

The outlook is negative.

"We cap the ratings on Ukrainian local and regional governments, including the City of Kyiv, at the level of our ratings on Ukraine. We are therefore downgrading Kyiv to 'CCC+' from 'B-'. The rating action follows our downgrade of Ukraine on January 28, 2014," the statement reads.

S&P says that the rating is supported by the city's position as the administrative and economic center of Ukraine, its fairly diversified economy, and wealth levels exceeding the national average severalfold.

The negative outlook on the city of Kyiv reflects that on Ukraine.

"We would revise the outlook to stable only if we took the similar action on Ukraine and if other rating factors developed in line with our base-case scenario," S&P said.

"A negative rating action on Kyiv would follow a negative action on Ukraine," S&P explains.

"We could also take a negative rating action on the city even if the sovereign ratings remain unchanged if the central government's support for Kyiv diminished, leading to a weaker debt repayment capacity for the city. This would likely result in worse budgetary performance than we currently expect in our base-case scenario, and take the form of restricted access to state banks' and the treasury's liquidity."