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Moodys upgraded Ukraine's local, foreign....>

UKRAINE
UKRAINE: Moodys upgraded Ukraine's local, foreign curr govt issuer, sr unsecured
rtg to Caa2 from Caa3, ups outlk to positive from stable. Moody's upgraded to
Caa2 from Caa3 rtg of Ukraine's 9 sr unsecrd Eurobonds issued" in Nov. 2015 govt
debt exchange operatn. Moody's affirmed Ca senior unsecured rtg of govt's $3Bln
bond sold to Russia in Dec. 2013; "bond is currently in default." It upgraded
"bckd lgterm FX issuer rtg of Financing of Infrastructural Projects to Caa2 from
Caa3," ups outlk to positive from stable. Fininpro's debt is fully guaranteed by
Ukraine gov.
- It cited "cumulative impact of structural reforms that, if sustained, are
expected to improve govt debt dynamics;" "significant strengthening of Ukraine's
external position." Ukraine has "heavy external debt servicing burden" in "next
several yrs that will require additional" FX "funding beyond what offcl lenders
are likely to provide"; "domestic politics and geopolitical tensions cld disrupt
Ukraine's access to private capital mkts," "weaken" currency w/ related "adverse
implicatns" on gov "debt metrics and economic stability"; reforms "if sustained,
cd lead to further improvemts" in "public and external debt sustainability."

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