KYIV, Feb 12 - Moody's Investors Service has changed the outlooks to stable from negative for both the city of Kyiv and city of Kharkiv, at the same time, Moody's affirmed the Caa3 foreign and domestic currency long-term issuer ratings of both cities as well as their caa3 Baseline Credit Assessments (BCAs)," the agency said on its website.

"The stabilization of outlooks reflect Moody's assessment that should both cities default, expected losses to creditors should be moderate and not exceed 35% despite the social and economic damages that the two cities continue to incur from the protracted military conflict. Moody's notes that both cities have repaid most of their debt to date and takes the view that the cities are able to manage their outstanding debt obligations, which now stand at very low levels," it says.