Ukraine political crisis effects markets

04/06/07 - Alfa Bank

LONDON, April 6 (newratings.com) – Analysts at Alfa Bank say that Standard & Poor’s lowered its rating on Ukraine from "stable" to "negative" on Thursday, while Moody’s kept its rating unchanged.

In a research note published this morning, the analysts mention that Standard & Poor’s downgraded Ukraine mainly due to rising political instability. On Thursday, the second day after the Ukrainian President dissolved the Verkhova Rada, the market reaction was less severe than was expected, with the EMBI+ Ukraine spread widening by 15 basis points, the analysts say.