UNIAN have received a press release from Moody`s according to which its investor service has concluded the possible upgrade, which started in March. Moody`s confirmed that the decision is not to upgrade the ratings due to upcoming uncertainties in the economical and political arena, which are against the government’s much improved debt metrics and comparatively consistent fiscal policy. However, a positive outlook on these ratings will be maintained.

Jonathan Schiffer, Moody`s Vice President said that Ukraine might now face difficult times due to the global market’s uncertainties and its financial dependency on other countries. He said that a positive outlook is judged because Ukraine has gained a huge foreign reserve cushion because of its strong continuous economic growth over past years and earlier current account surpluses.

Schiffer shared that this cushion will help Ukraine to pass through a period of huge current account deficits without any problem, but the uncertainty factor is also very large, so upgrade does not seemed appropriate at this time. Schiffer also pointed that the other positive factors are the healthy growth of government revenues and balanced economic growth distribution between external and internal resources.

He also commented that the high inflation rate, rise in energy and food prices, and laidback macroeconomic policies will improve gradually in the next two to three years when domestic harvest will improve and fiscal policy will remain firm. He also stated that the three political parties of Ukraine are strongly in contest with each other and some constitutional clarifications are required between presidential prerogatives and parliamentary powers.

Mr. Schiffer stated that Moody’s will monitor two key points; one, the National Bank of Ukraine’s ability to cool down the overall heated economy of the country and secondly, the government’s fiscal policy as an election approaches.