‘The City of Kyiv repaid its Ukrainian hryvnia (Hr) 1.125 billion domestic bond series B on Oct. 8, 2014, instead of restructuring it as previously announced. We think Kyiv’s course of action is coordinated with and supported by the central government of Ukraine,’ S&P said.
S&P said that although Kyiv will face high debt service obligations in 2015-2016, including repayment of $550 million in eurobonds, we believe that it will similarly benefit from central government support.
‘We regard Kyiv’s liquidity position as weak. In our opinion, the city’s cash position will likely remain very low and volatile, while its access to external liquidity will remain uncertain against its continuing exposure to material refinancing risks in 2014 and 2015, with a $250 million eurobond to be repaid in 2015. Nevertheless, while Kyiv’s liquidity position is hampered by its refinancing exposure, we think the central government will support the city’s refinancing efforts,’ reads the report.