Fitch Ratings has downgraded the rating of Odessa due to restructuring of the loan

International rating agency Fitch Ratings downgraded the long-term rating of Odessa-term foreign and local currency ratings to 'CC' from 'B-'; rating placed on review for possible downgrade. Rating downgrade due to the intention of Odessa delay, due to problems with liquidity, loan repayment for 10 million Swiss francs, issued by BNP Paribas Finance PLC, said in a statement the agency. Rating of 'CC' means that, in respect of issuers and securities, obligations that are satisfied, a default is likely. Odessa in 2007, obtained a loan BNP Paribas Finance PLC to CHF50 million, he was granted in two tranches: Tranche A for CHF40 million - a 8.50% per annum with repayment of 30 December 2012, Tranche "B" - to CHF10 million under 8.25% per annum maturing on Dec. 30, 2010. Odessa City Council recently approved a preliminary scheme for the restructuring of the loan, which suggested that the Bank and includes repayment of the loan in three tranches through September 2011: first CHF4 million - up to 29 December 2010, the second in CHF2 million - up 30 April 2011, the third in CHF4 million - up 31 August 2011. Odessa is already listed creditor first tranche CHF4 million, according to the first vice-mayor of Odessa, Sergey Chernenko, the situation was a result of ill-considered fiscal and financial policies of the previous city administration headed by former Mayor Edward Hurwitz. In circulation are also Bills of Series "C", located in Odessa in 2005 to $ 5 million USD with a yield of 14%. Payment on the bonds is scheduled for December 31, 2010. According to experts Fitch, the city will meet its obligations to service the bonds. Standard & Poor's on Monday downgraded the credit rating of Odessa to "CCC +" to "CCC-" and placed it on review with negative implications. It should be noted that in September this year, the international rating agency Fitch has confirmed long-term issuer default rating on its foreign and national currency of Ukraine at the level of "B". According to a press release from the agency, the forecast - "stable". In addition, Fitch affirmed the short-term IDR of Ukraine "B", as well as the country rating ceiling of 'B'. "Despite the strong start of policy implementation in accordance with the requirements of the International Monetary Fund (IMF), changes in financial and economic risks to July 2010 was not enough to raise the rating agency" - are listed in the press-release words of the director in Fitch's Sovereigns David Heslama ratings. "For the greater objectivity in the medium-term forecast, a more long period of study of compliance (the requirements of the IMF), the current policies," - he added. Source: NEWSru.ua