OREANDA-NEWS. July 15, 2010. Fitch rating agency has affirmed a long-term foreign and local currency issuer default rating of Kyiv city at B-, the agency reported July 14.The outlook for the long-term perspective is defined as negative.  Such an action was triggered by the Kyiv municipality budget deficit as well as the low liquidity and credit risks of the city.

Millennium Capital deems this news as neutral for municipal bonds. The budget deficit has long evoked concerns of investors, although the recent coupon payout of the Kiev bonds indicates that the capital is capable of servicing its debt.