MOSCOW, October 7 (RIA Novosti) - The global rating agency Fitch Ratings has reduced Kiev's long-term Issuer Default Ratings (IDR) in both international and local currencies from "CCC" to "CC" amid the decline in creditworthiness of the Ukrainian capital, Fitch agency said in a press release on Tuesday.
"Fitch Ratings has downgraded the City of Kyiv's [Kiev's] Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'CC' from 'CCC' and its National Long-term rating to 'BB(ukr)' from 'BBB(ukr)'," the statement read.
The next scheduled review date for Fitch's rating on the city of Kiev was October 10. However, the agency decided to reevaluate the city, prior to that date in order "to reflect adverse deterioration in its credit profile." This decision follows Kiev's announcement on restructuring domestic bonds and "actual non-repayment of the scheduled tranche" on October 6.
Fitch also noted that the agency "expects volatility in Kyiv's [Kiev's] budgetary performance due to the lower predictability of potential fiscal changes as national parliamentary elections are scheduled on 26 October 2014."
As a result of the ongoing political crisis in the country, Ukraine is currently on the verge of a default. Kiev authorities are trying to rescue the country's economy with international loans, including a $17 billion loan from the International Monetary Fund.