Fitch worsens outlook for Ukraine banks due to coronavirus.

Fitch has revised banking sector outlooks to negative for seven of the eight markets it covers in the region.

REUTERS

REUTERS

The economic pressures resulting from the spread of the coronavirus and the lower oil price are credit negative for banks in Ukraine and neighboring markets, and could result in negative rating actions, Fitch Ratings says.

Fitch has revised banking sector outlooks to negative for seven of the eight markets it covers in the region – Ukraine, Russia, Kazakhstan, Armenia, Azerbaijan, Belarus and Georgia.

"The degree of pressure on banks will depend on the extent and duration of economic slowdowns, the specific exposures of national economies and external finances, the policy responses of national authorities, and individual banks' business profiles, risk exposures and financial metrics going into the slowdown," the report says.

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As UNIAN reported earlier, Fitch in its outlook released March 10 suggested Ukraine's GDP growth in 2020 at 3.5% from 3.2% in 2019.

At the same time, the agency noted risks of slowdown for emerging markets over uncertainty regarding the influence of Covid-19 coronavirus on global growth and world raw material prices.

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