Fitch's 'Inside Credit': Greek Brinkmanship and Ukraine In Focus This Week

NEW YORK--()--This week's edition of Fitch Ratings' Inside Credit focuses on sovereign creditworthiness in Europe, specifically Greece and Ukraine.

Greece faces increased risks to its sovereign credit profile from the continued brinkmanship in negotiations between its government and official creditors. While the full impact remains unclear, the uncertainty amplifies the economic damage caused by falling confidence.

"The damage to investor, consumer and depositor confidence is increasing risks to growth. It may take time to repair even if agreement with official creditors is reached in the coming days or weeks," says Douglas Renwick, Senior Director of Sovereigns.

Last Friday, Feb. 13, Fitch downgraded Ukraine's foreign currency Issuer Default Rating to 'CC' from 'CCC' and affirmed its local currency rating at 'CCC'. The downgrade of Ukraine's foreign currency rating indicates that a default of some kind appears probable.

"While the new IMF program will help close Ukraine's financing gap, a restructuring of privately-held external debt also appears increasingly likely to play a role," says Charles Seville, Director in the Sovereigns group. "Conflict in the eastern regions has severely impacted the economy, bringing sovereign creditworthiness down with it."

Other topics covered in this week's edition of Inside Credit include:

-Falling oil prices and MENA sovereign credit trends

-CCAR to highlight US bank capital flexibility divide

-Emerging Asia's banks still the primary funding source for corporates

-European securitization losses to remain low

-Losses on 2000-2014 Asia-Pacific structured finance transactions falling

-Chinese banks to face margin pressures through 2015

-Confidence returning to European high yield market

-Australian covered bonds issuance expected to decrease in 2015

-Pre-crisis securitization losses fall again on U.S. housing recovery

-Labor relations key to European airline restructuring

'Inside Credit' is a weekly snapshot of Fitch Ratings' noteworthy content, selected from all sectors and regions. To receive the weekly edition, distributed every Friday at 8am ET, please sign up here:

http://pages.fitchemail.fitchratings.com/InsideCreditSignUp/

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Alyssa Castelli, New York, +1-212-908-0540
alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Alyssa Castelli, New York, +1-212-908-0540
alyssa.castelli@fitchratings.com