WASHINGTON (Sputnik) — Ukraine continues to face highly fragile macroeconomic conditions, Moody’s Investors Service said in a press release on Tuesday.
“The macro profile for Ukrainian banks remains "Very Weak-" as Ukraine continues to face highly fragile macroeconomic conditions and the country's adverse operating environment will continue to exert pressure on Ukrainian banks' financial fundamentals," the release said.
Ukraine's economy has been hit hard by the conflict that erupted between government forces and independence supporters in the southeast of the country, who refused to recognize the coup-imposed nationalist government in 2014.
Ukraine’s GDP contracted by nearly 20 percent in 2014-2015, according to Moody’s.
The experts of the rating agency predict, however, that Ukrainian banks' funding and liquidity profiles will likely face less pressure following stabilization of the currency and decreased geopolitical tensions.
On November 20, Moody’s upgraded Ukraine’s sovereign rating from Ca to Caa3, and changing the outlook from negative to stable.
