WASHINGTON, Feb 5, 2022 (BSS/AFP) - Credit rating agency Fitch downgraded
Ukraine's long-term debt outlook from positive to stable on Friday due to
tensions with Russia, while maintaining its rating at B.

  "Expectations of a more protracted period of heightened tensions with
Russia, an increased downside risk of conflict, constrained financing
conditions, moderate capital outflows and weakening international reserves,
have increased external financing risks since our previous review in August,"
the rating agency said.

  Though downgraded from positive to stable, the outlook is not negative, as
the agency believes "full-scale military conflict with Russia will be
avoided."

  The agency is counting on a "somewhat greater availability of IFI
[International Financial Institutions] and bilateral finance, Ukraine's
credible macro-policy framework and strengthened fiscal and FX reserves
position coming into 2022," which it said "will help mitigate impacts."

  The IMF on Wednesday urged a peaceful resolution to the conflict between
Russia and Ukraine, stressing that it was already having an impact on energy
prices and posed a threat to global growth.

  Since the end of 2021, Russia has massed up to 100,000 soldiers on the
border with Ukraine. Western states accuse Moscow of preparing to attack.

  Moscow denies any plans to invade, while demanding written guarantees for
its own security, including assurances that Ukraine will not join NATO, and
the end of the Atlantic Alliances expansion eastwards, in particular in the
former Soviet republics.