KIEV, Sept. 21 – Standard & Poor's Ratings Services says that its ratings for the City of Kiev were not immediately affected by the new bank loans recently obtained by the city to cover its energy spending.

"Although we previously took the view that any new borrowings in 2010 would be unlikely, the terms of the loans (a 12-month grace period and an even repayment schedule) suggest that the new debt will not materially expand the city's debt servicing over the next 18 months beyond the levels of our existing forecasts," reads a statement by S&P.

"Our base-case scenario still incorporates our view that fiscal consolidation at the sovereign level as well as direct central government involvement in the city's management will enable Kiev to meet its debt repayment schedule in 2011-2012. This is likely as a result of increased grants from the central government or lower contributions from the city to the state budget, and the partial refinancing of Kiev's debt obligations," say S&P experts.