S&P cuts Ukraine’s credit rating, assigns negative outlook on conflict fallout

(Reuters) – Global ratings agency S&P on Friday cut Ukraine’s sovereign rating to ‘CCC+/C’ from ‘B-/B’, citing a larger fallout from Russia’s military attack on the country.

“Substantial damage to Ukraine’s economy and tax-generation capacity has made government debt payment more dependent on international financial support,” the agency said in a statement.The ratings agency said it expected Ukraine’s real gross domestic product to contract by 40% if the conflict persists in to second half of 2022.

It also assigned a negative outlook, saying risks from the military conflict could undermine the government’s ability to meet its debt obligations.

(Reporting by Bhanvi Satija in Bengaluru; Editing by Arun Koyyur)