Russia sees a high probability that neighboring Ukraine will default. Standard & Poor’s says that outcome is likely. Even Ukraine’s acting president calls the country’s plight a “pre-default situation.”
Hungary ’s commitment to cut the budget deficit hasn’t removed the threat to its investment-grade debt rating because the government needs to clarify its economic policies, Standard & Poor’s said. Moody’s Investor Service, also mulling a downgrade, said fiscal plans will steer its decision.
Ukraine’s opposition set up a clash with the ruling party over a proposed cabinet shakeup, bolstering demands for the ouster of Prime Minister Mykola Azarov after the biggest street protests in almost a decade.
Anglo Irish Bank Corp. ’s bailout may cost Ireland’s government more than 35 billion euros ($47 billion), Standard & Poor’s credit analyst Trevor Cullinan said, exceeding the rating company’s previous estimate.
Standard & Poor’s maintained its negative outlook on Britain’s top credit rating, saying its projections for the economy are less optimistic than those in last month’s emergency budget. The pound fell.
Polish Prime Minister Donald Tusk won “breathing space” with a four-year fiscal plan that uses as much as 36 billion zloty ($11.9 billion) of asset sales and cash management savings to defer tax increases and spending cuts.
Ukraine’s credit-rating outlook was cut to negative from stable by Standard and Poor’s, which cited “significant” funding risks after the country failed to restart an international bailout or agree with Russia on lowering natural-gas prices.