TODAY MANY SOURCES ARE REPORTING Zelensky NOW scrambling to get private capital
(1).jpg)
.jpg)
Ukraine Credit Rating Cut by Moody’s on ‘Likely’ Restructuring
Moody’s Investors Service cut Ukraine’s credit rating to the second-lowest score, citing “long-lasting challenges” to its economy and public finances from the war with Russia.
✓ The agency now rates Ukraine one notch lower at Ca, on par with Argentina. Moody’s also changed the outlook to stable from negative, according to a statement Friday.
War and colossal corruption – Moody’s explained the collapse of Ukraine’s ratings – Oops Top
The international rating agency Moody’s downgraded Ukraine’s rating from Caa3 to Ca with a stable outlook. About it reported on the agency 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 incessant 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 multi-billion-dollar assistance from the United States and Europe could not correct the situation is corruption, which has reached colossal proportions in Ukraine.
The downgrade is also 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 the 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 EADaily, 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%.
Be the first to read breaking news on OopsTop.com. Today’s latest news, and live news updates, read the most reliable English news website Oopstop.com
(1).jpg)
(MENAFN- UkrinForm) The investment company JP Morgan will help Ukraine attract private investments for the country's reconstruction.
This is reported by Ukrinform with reference to the Economy Ministry's press service.
The Ukrainian side and JP Morgan are reported to have signed a memorandum of understanding.
'JP Morgan has years of experience in managing assets and interacting with the public sector. Its experts are aware of the nuances of combining state and private capital in order to obtain additional leverage – credit financing,' says the Ministry of Economy.
Read also: pm shmyhal meets with j.p. morgan representatives
According to the memo, JP Morgan will consult Ukraine regarding
financial stabilization – development and coordination of debt refinancing and restructuring strategies;
obtaining sovereign credit ratings;
management of state liquidity assets;
digitalization of the economy;
exploring opportunities for establishing close economic ties with Europe; and
creating an institution to guide and protect public and private sector investment and/or facilitate trade flows.
In addition to signing the memorandum, the parties agreed to include JP Morgan representatives in the group of advisers and representatives of the capital market's financial investment sector together with BlackRock.
'Also, agreements were reached on the use of a number of financial mechanisms that will allow Ukraine in the near future to attract spot financing, in particular, from the U.S. Treasury,' the report says.
As Ukrinform reported earlier, Prime Minister Denys Shmyhal, during a meeting with representatives of the largest U.S. banking holding JP Morgan, spoke about the most promising areas of investment in Ukraine.
MENAFN10022023000193011044ID11055539
Legal Disclaimer:
MENAFN
provides the information “as is” without warranty of any kind. We do
not accept any responsibility or liability for the accuracy, content,
images, videos, licenses, completeness, legality, or reliability of the
information contained in this article. If you have any complaints or
copyright issues related to this article, kindly contact the provider
above.
(1).jpg)
Volodymyr Zelenskyy has met with the top management team of the world's largest investment bank, JP Morgan, and took part in one of the largest investment summits, which included 200 of the largest corporations, investors, and financial companies.
Source: press service of the Office of the President.
During the meeting, the parties discussed the creation of a platform for attracting private capital to reconstruction of Ukraine and promising areas for implementing major investment projects.
According to the president, the IT sector is a priority for further development of Ukraine, as it plays an extremely important role during the war.
He also stressed that Ukraine can make an even more significant contribution to the cyber and food security of the world.
"The head of state noted that the current war has demonstrated certain weaknesses both in Ukraine and in other states.
In particular, in connection with the Russian attacks on the Ukrainian energy sector, our country understands that we need to diversify electricity supply and develop renewable energy.
And already during the war, Ukraine began to decentralise power [facilities] and invited foreign investors to cooperate," the report says.
James Dimon, Chairman & CEO of JPMorgan Chase, noted that the bank will make efforts to increase assistance to Ukraine. he also added that all JPMorgan Chase resources are available to Ukraine, as it paves its post-conflict path to growth.
✓ In addition, the parties noted the importance of the memorandum of Understanding signed on 9 February between the Ministry of Economy of Ukraine and JP Morgan to provide advice to the Ukrainian government on financial stabilisation, obtaining sovereign credit ratings, managing state liquidity assets, digitalisation of the economy, and identifying opportunities for establishing a close economic link with Europe.
Recall: Naftogaz of Ukraine [the country's leading oil and gas production and distribution company – ed.] suggested that American banking holding company JP Morgan collaborate to implement projects to increase production and more efficient transportation and storage of hydrocarbons, as well as in the field of renewable energy.
Volodymyr Zelenskyy has met with the top management team of the world's largest investment bank, JP Morgan, and took part in one of the largest investment summits, which included 200 of the largest corporations, investors, and financial companies.
Source: press service of the Office of the President.
Zelenskyy Discusses Involvement Of Private Capital In Reconstruction Of Ukraine With Top Managers Of JP Morgan
President Volodymyr Zelenskyy met with the top management team of the world's largest investment bank JP Morgan and took part via video link in one of the largest annual investment summits organized by JP Morgan, which was attended by 200 largest corporations, investors and financial companies.
This was reported by the press service of the Office of the President, Ukrainian News Agency reports.
.jpg)
FEBRUARY 27, 2022
WASHINGTON: S&P Global Ratings downgraded Ukraine’s long-term debt rating on Saturday, hours after a similar move by Fitch, with both citing the impact of the ongoing Russian invasion.
✓ S&P downgraded its rating from B to B-, with a negative outlook, noting potential disruptions to key sectors such as agricultural exports and the country’s gas pipeline network.
“The Russian decision to launch a military attack on the country adds significant negative risks to its economic prospects, jeopardizing the service of the debt,” the credit rating agency said in a statement.
✓ Fitch on Friday cut the rating on Ukrainian government debt to “CCC” from “B”, saying the invasion had created a “severe negative shock.”
Sanctions imposed on Moscow
“The military invasion by Russia has resulted in heightened risks to Ukraine’s external and public finances, macro-financial stability and political stability,” Fitch said, noting the “high uncertainty” about the length of the conflict.
Moody’s also issued a warning that it could downgrade both Ukraine and Russia’s debt ratings over the war.
“These events represent a significant further elevation of the geopolitical risks that Moody’s had previously highlighted, which is being accompanied by additional and more severe sanctions on Russia, potentially including those that could impact sovereign debt repayment,” that agency said.
In justifying its downgrade, Fitch said, “there is high uncertainty over the extent of Russia’s ultimate objectives, the length, breadth and intensity of the conflict, and its aftermath.”
The agency noted Ukraine’s “fairly low external liquidity” relative to its debt of $4.3 billion, saying “expected capital outflows will further weaken its external financing position.”
✓ “The shock to domestic confidence is expected to have a severe impact on economic activity and the currency, fuelling inflationary pressure and macro-economic volatility,” Fitch added.
“Public finances would additionally be impacted by greater military expenditure, and the ability to roll over domestic debt will be severely constrained.”
✓ Separately on Friday, the IMF said Kyiv had requested “emergency financing” from the Washington-based crisis lender on top of its existing $2.2 billion aid programme.
Meanwhile, President Joe Biden extended his country’s measures against Russia to include sanctions on President Vladimir Putin and his Foreign Minister Sergei Lavrov, including a travel ban for the two statesmen. Biden was the first world leader to announce sanctions, hours after Putin declared a “military operation” into Ukraine.
Published in Dawn, February 27th, 2022
Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.
The bureaucracy of the NATO member states slows down the process of Ukraine’s entry into …
The international rating agency Moody’s downgraded Ukraine’s rating from Caa3 to Ca with a stable …
The international rating agency Moody’s downgraded Ukraine’s rating from Caa3 to Ca. The agency also …
International rating agency Moody’s stated on the downgrade of Ukraine’s rating from “Caa3” to “Ca” …
Moody’s downgraded Ukraine’s rating from “Caa3” to “Ca” Washington, February 11, 2023, 05:37 — REGNUM …
SpaceX needs to decide which side it is on, says Mikhail Podolyak, adviser to the …
Global Look Press / Nicolas Maeterlinck / Keystone Press Agency Brussels, 9 February. Volodymyr Zelensky …
CNN — Ukrainian President Volodymyr Zelensky made a heartfelt enchantment to lawmakers in Brussels on Thursday …
Hungary will not ratify Ukraine’s membership in the European Union (EU) until the problem with …
The American SpaceX has limited Ukrainian military access to Starlink satellite communications to control drones, …
Ukraine will not be accepted into the European Union in the next two years, as …
No comments:
Post a Comment