S&P lower Ukraine rating to CCC- on increased default risk

People shop in a market as snow falls on the eastern Ukrainian city of Donetsk on November 30, 2014Standard & Poors lowered its credit rating for Ukraine on Friday to CCC- with a negative outlook, warning that dangerously low foreign currency reserves could prompt a default within months. “The negative outlook reflects our view of the increasing risk that, without additional financial support, Ukraine may default on its obligations,” the credit rating agency said. Ukraine is embroiled in a war with Russian-backed separatists in its main industrial region and earlier lost control to Russia of the strategic Crimea province. S&P said a delay this year in IMF aid, couple with “significantly reduced foreign currency official reserves, increases the risk that the Ukrainian government might not be able to meet its obligations.

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