Moody's maintains 'Ca' rating on Ukraine as effects of war continue
May 30 (Reuters) - Credit ratings agency Moody's affirmed Ukraine's 'Ca' rating on Friday, citing the long-lasting impact of the war with Russia on its economy and finances, as well as uncertainties over peace negotiations with Moscow.
"Growth prospects remain subdued as challenging security conditions, labour shortages and attacks on energy infrastructure continue," Moody's said, maintaining its outlook for Ukraine at stable.
The ratings agency on its website, opens new tab defines 'Ca' rating obligations as "highly speculative and are likely in, or very near, default, with some prospect of recovery in principal and interest".
On Friday, Ukraine's finance ministry said it would not be paying more than half a billion dollars due to holders of its GDP warrants, marking the first payment default since it created the instruments.
Kyiv also resisted U.S. and Russian pressure to commit to attending another round of peace talks on June 2, saying it first needed to see Russian proposals.
Ukraine's economy cratered after Russia's full-scale invasion in 2022, falling close to 30%. Although it staged modest growth in 2023 and 2024, its gross domestic product (GDP) remains below the pre-war level as it extensively restructures its debt.
Moody's forecast Ukraine's GDP growth to slow to 2.5% in 2025 from 2.9% in 2024, adding that it expects economic growth to remain "subdued" in 2026 and 2027.
Rival ratings agency Fitch last week affirmed Ukraine's long-term foreign currency sovereign credit rating at "Restricted Default", as the nation continues to navigate diplomatic tensions and a significant erosion of its finances.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
an hour ago
- The Guardian
‘An electrifying moment': Charles and Camilla visit sparks Ravenna tourism boom
If the most satisfying thing for anyone giving a guided tour is speaking to an enthusiastic and curious listener, then Diego Saglia felt he royally hit the jackpot when he met Queen Camilla in Ravenna. The queen, who was in the northern Italian city with King Charles during a state visit to the country in early April, was so enamoured of her visit to a museum dedicated to the British poet and satirist Lord Byron that she kept her husband waiting in the courtyard. She lingered over Byron's original manuscripts, locks of his curly hair and the love letters he wrote to Countess Teresa Guiccioli. The king paid an impromptu visit to the museum, which opened in November, when he went to collect the queen after his own personal tour of the city's Basilica of San Vitale, known for its Byzantine mosaics dating back to the sixth century. 'Darling, come and meet these people,' the queen beckoned to Charles, who duly greeted the staff and posed for selfies while praising the museum, which is located in the residence where the poet completedDon Juan and The Prophecy of Dante during his stay in 1819-21. 'It was an electrifying moment,' said Saglia, an English literature professor at the University of Parma and a member of the museum's scientific committee. 'We had not long been open, and then these exceptional visitors arrived. Camilla was great and then the king showing up was an incredible surprise. He couldn't stop talking about the beauty of the mosaics, but Camilla kept telling him: 'But no, I've found interesting stuff here.'' The royal couple's obvious appreciation of Ravenna, an elegant city in Emilia-Romagna brimming with art and culture, and where the poet Dante Alighieri is buried, has left its mark. Not only did their fleeting trip attract hundreds of union jack-waving visitors from beyond the city, but it has since prompted a significant increase in tourists, particularly from the UK. Saglia said the city, especially during the weekend, was now packed. But as Rome, Florence and Venice grapple with overtourism, people in Ravenna, which has thus far remained off the well-trodden path, have welcomed the royal influence on tourism, and were proud that the city was the only one in Italy the couple visited after the capital. 'We are very happy because obviously the visit provided an important international showcase,' said Maria Grazia Marini, the director of tourism services at Ravenna's city council. 'The people of Ravenna are very proud of their heritage, so the fact that they came was truly a source of pride. The city dressed up for the party and many people were involved.' Sign up to This is Europe The most pressing stories and debates for Europeans – from identity to economics to the environment after newsletter promotion Giacomo Costantini, Ravenna's tourism councillor, said visitor numbers were up by 16% in April compared with the same month in 2024, with most coming from England. While the launch this year of British Airways flights to Federico Fellini airport in nearby Rimini had helped, Costantini put the increase down to the 'beautiful bond of love between Ravenna and England'. 'We have a shared passion for poets and writers, whether it be Dante or Shakespeare,' he said. 'This connection was then crowned by the opening of the Byron museum.' All the hotels are fully booked this weekend for the start of the Ravenna festival, which includes concerts directed by the Italian conductor Riccardo Muti, who lives in the city. Fabio Ricci, a spokesperson for the Bryon museum and the festival, had no doubt the royals would put Ravenna in the spotlight. 'Ravenna is a city that combines, within a few kilometres, extraordinary art, high-quality entertainment and beautiful nature, including pine forests and the sea,' he said. 'On top of that, you have good food. What more do you want from life?'
Telegraph
an hour ago
- Telegraph
EU woke green rules are blocking Europe's rearmament
By the time the environmental permits are signed off for a new TNT plant in Sweden at the end of this year, Russia will already be producing explosives at a new facility. Swedish Ballistics (SweBal) is aiming to tap into Europe's rush to rearm itself by opening what will be the EU's second factory producing military-grade TNT, used in the production of artillery shells, landmines and grenades. The firm hopes to produce 4,500 metric tonnes annually by the end of 2027, which will be enough for Europe to produce roughly 450,000 rounds of 155mm artillery ammunition. But for now, Joakim Sjöblom, its chief executive, is busy navigating Brussels' red tape and filling in forms to secure the necessary environmental permits to build the plant. Almost every new building in the EU requires paperwork covering everything from its habitats directive to nitrogen emissions and water quality. 'It's borderline ridiculous,' Mr Sjöblom tells The Telegraph. 'I can respect it, but the processes are really adapted for an eternal peace. When the world changes, the processes need to change.' Mr Sjöblom, who by no means presents himself as an opponent to environmental rules, adds: 'But hey, we are living in democracies, we have things we need to cater for.' The same can't be said for Vladimir Putin's Russia, which has recently opened a new explosives factory in remote Siberia without a care for any Arctic tundra it disturbs. Moscow's ability to build and muster enough shells has been pivotal in its battlefield gains since the start of the full-scale invasion of Ukraine in February 2022. Western and Ukrainian intelligence sources continue to claim Russia's armed forces largely rely on donations from North Korea. But the emergence of new facilities to produce ordnance at home is a cause for concern. Annual production of artillery rounds in Russia is believed to be roughly five million shells, outstripping Europe's annual output of 700,000 by around seven to one. At current rates, it would take European militaries a decade to replenish their stockpiles after any ceasefire in Ukraine. European artillery manufacturers would need to find 50,000 metric tonnes of TNT to match Russia. The continent is currently reliant on Poland for the domestically produced explosives needed to build Nato-standard artillery rounds. But Nitro-Chem, the Polish manufacturer, which doesn't comment on its output, still doesn't produce enough TNT to satisfy demand. Boosting manufacturing 'could placate Trump' This means European arms manufacturers have been forced to turn to suppliers in Brazil and India, two founding members of Russia's Brics group, potentially giving the Kremlin the ability to halt artillery shipments to Europe. For Mr Sjöblom, this reliance on foreign suppliers in an attempt to keep peace with Russia is detrimental to Nato's whole philosophy of military deterrence. But he also says boosting manufacturing on the continent would be the perfect way to address Donald Trump's concerns that Europe doesn't do enough to defend itself. 'It's a little ironic that 500 million Europeans are begging 300 million Americans for help to defend against an enemy of 140 million people in Russia, who have struggled against a country with 40 million people in Ukraine,' Mr Sjöblom said. The tech entrepreneur does believe there is hope that the EU is waking up to the need to ignore some of its environmental regulations if it is to deliver a continent-wide rearmament. The bloc's ASAP (Act in Support of Ammunition Production) aims to boost production of artillery rounds and missiles, and promises to push member states to adopt easier administrative processes. 'So there are movements from Brussels that impact how permits are given out,' Mr Sjöblom explained. The European Commission did not respond to The Telegraph's requests to comment on the issue of environmental blockages to rearmament. 'A nature reserve sign won't deter Putin' But similar complaints have sprung up across the bloc since Putin's invasion of Ukraine. One of the most prominent critics is Ruben Brekelmans, the Dutch defence minister, who told a Paris defence event earlier this year: 'In the Netherlands, certain EU environmental legislation prevents the military from conducting exercises and from expanding our bases. 'And of course the environment is important and should be protected, but Putin won't be deterred by a sign warning him that he's about to enter a nature reserve.' Nitrogen emission rules mean that many military sites cannot be built, or farms – the major emitter of the gas – have to be sacrificed as countries try to hit quotas. This has prevented the Dutch government from signing off on permits to build the barracks necessary to grow its armed forces to increase from 74,000 to 200,000. Meanwhile, a judge recently ruled that tanks and fighter jets could not be used in certain areas of the Netherlands without breaching the rules. Still, the Commission is trying to ease the problem for its members' militaries by giving defence ministries more flexibility. This includes a promise to 'enable the rapid renewal of building and environmental permits for defence-industrial projects by designating them as a matter of public interest'. And Ursula von der Leyen, the Commission president, recently said: 'There could be no stronger symbol and no greater use for that money than to make Ukraine and all of Europe a safer place to live.'
The Sun
an hour ago
- The Sun
Man Utd confirm signing of Matheus Cunha in £62.5million transfer Red Devils reluctantly met release clause terms
MANCHESTER UNITED have completed the signing of Matheus Cunha. The Red Devils have signed the Brazilian from Wolves after agreeing a £62.5million deal for his services. 3 3 Cunha, 26, is delighted to have moved to Old Trafford and is champing at the bit to get started. The Brazil international was Wolves' star man last season, scoring 17 goals and racking up six assists in 36 appearances. Fifteen of those goals came in the Premier League campaign, which United finished in an embarrassing 15th place. United will pay Cunha's release clause in three instalments over the next two years. The club had hoped to pay yearly instalments until 2029, but their initial proposal was rejected by Molinuex chiefs. His arrival is the first of a make-or-break transfer window for Red Devils manager Ruben Amorim. The Portuguese gaffer is plotting a major overhaul of his squad in the coming months. There will be several outgoings at Old Trafford this summer to fill the financial blackhole left by the club's failure to qualify for Europe. JOIN SUN VEGAS: GET £50 BONUS Several big names will be up for sale, including skipper Bruno Fernandes and youngster Alejandro Garnacho. Wolves forward Matheus Cunha faces trial over 'driving blunder' The Sun is your go to destination for the best football, boxing and MMA news, real-life stories, jaw-dropping pictures and must-see video.
