The international rating agency Fitch has downgraded the outlook on Ukraine's long-term rating of BB- in foreign and national currency from "positive" to "stable," reports "Ukrainian News."\n\nFitch also confirmed Ukraine's long-term rating of BB- and short-term rating of B.\n\nAccording to Fitch's statement, one of the reasons for the change in the outlook on Ukraine's credit rating was the Verkhovna Rada's decision to dismiss Yuriy Yekhanurov's Cabinet.\n\nIn Fitch's opinion, the impact of the dismissal in the short term will be minimal, since Yekhanurov and his Cabinet will likely continue to perform their duties until the parliamentary elections in March, but the Rada's decision has further intensified contradictions between the country's main political forces and increased the risk that the coalition government formed after the elections will be weak and prone to disagreements.\n\n"Against this backdrop, prospects for implementing structural reforms have deteriorated. In addition, the risk has increased that political measures taken in response to a shock related to gas price increases or some other upheaval will be insufficiently prompt and adequate," the statement says.\n\nFurthermore, Fitch has revised its forecast for Ukraine's GDP growth, lowering it to 1-2%. However, according to Fitch, despite unfavorable circumstances, Ukraine's default ratings continue to be supported by the country's low levels of general government debt and net external debt - significantly lower than in comparable rated countries.\n\nAs reported, in January 2005 Fitch upgraded Ukraine's long-term rating in foreign and national currency from B+ to BB-, at which time the rating had a "stable" outlook. In June 2005, Fitch improved the outlook on Ukraine's long-term BB- rating in foreign and national currency from "stable" to "positive."\n\nAccording to Fitch's methodology, ratings in this group mean that the risk of country default exists, but it is not very high.\n\nOn January 10, the Rada dismissed Yekhanurov's Cabinet of Ministers. The Ministry of Justice, after analyzing the Rada's resolution, found it to be inconsistent with a number of provisions of the Constitution and recommended that President Viktor Yushchenko appeal to the Rada with a demand to cancel this resolution, and Yushchenko stated that he considers the Cabinet to be fully functioning rather than acting.