Moody's has downgraded the Government of Ukraine's foreign and domestic currency long-term issuer ratings and foreign currency senior unsecured debt ratings to Caa3 from Caa2. Moody's has also changed the outlook to negative from ratings under review, concluding the review for downgrade that was initiated on 25 February 2022, reads the report released on the agency's website, Ukrinform reports. "The downgrade of the ratings to Caa3 is driven by the increased risks to Ukraine's government debt sustainability from the invasion by Russia leading to a more protracted military conflict than Moody's initially expected, which increases the likelihood of a debt restructuring and losses being imposed on private-sector creditors," Moody's experts explain.