KIEV, May 31 – Moody's Investors Service has changed the outlook for Ukraine's banking system to stable from negative, the rating agency said in a statement.

"The change in outlook reflects our view that the economy will begin to emerge from a deep recession in the coming 12-18 months, which will help contain further asset quality deterioration. Improved funding conditions will support core lending, and the local currency's recent stabilization will help slow the decline in banks' solvency," the statement reads.