Fitch raises Ukraine’s outlook from negative to stable after new government is formed

Fitch ups Ukraine’s debt rating outlook

KIEV, Ukraine — Fitch Ratings agency has revised Ukraine’s sovereign debt outlook to stable from negative, meaning it is likely to upgrade its rating soon, because of reduced political risk after an election.

Ukraine’s parliament voted the new Cabinet last week after presidential elections last month. Prime Minister Mykola Azarov says the government’s priorities are passing a 2010 budget and resuming cooperation with the IMF, which suspended a bailout loan in November 2009.

Fitch also affirmed Wednesday Ukraine’s long-term foreign and local currency issuer default rating.

Ukraine was hit particularly hard by the global crisis, with gross domestic product dropping 15 percent last year.

Standard & Poor’s last week increased Ukraine’s sovereign credit rating by one notch.