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War and colossal corruption - Moody's explained the collapse of Ukraine's ratings

Ukraine (, - International rating agency Moody's downgraded Ukraine's rating from Caa3 to Ca with a stable outlook. This was reported on the agency's website.

The established rating means the pre-default (or already default) state of the economy, which is characterized by the presence of high-risk assets and speculative liabilities.

Below the rating set for Kyiv, only category C, which signals to investors that they have no chance of recovering the principal and interest.

Moody's experts state that even against the backdrop of ongoing Western financial injections, the Ukrainian economy continues to lose stability, and the country's public debt is growing.

Experts believe that the main reason why the multibillion-dollar assistance from the United States and Europe could not correct the situation is corruption, which has reached colossal proportions in Ukraine.

Also, the downgrade is explained by the consequences of Russia's military operation, "which is likely to create long-term problems for the economy and public finances of Ukraine."

These problems raise risks to the sustainability of public debt and make debt restructuring likely at significant cost to private sector creditors.

As the situation continues to worsen, Moody's does not exclude the possibility of a further downgrade of the country's rating.

The agency downgraded its long-term issuer rating in foreign and local currencies (from Caa3 to Caa2) and senior unsecured debt rating in foreign currency, changing the outlook to stable from negative.

As reported, at the end of January, the International Monetary Fund (IMF) updated its forecast for the development of the Russian economy for 2023 and 2024. If earlier the fund's analysts predicted a decline of 2.3%, now they believe that Russian GDP should grow by 0.3%.

War and colossal corruption - Moody's explained the collapse of Ukraine's ratings