MOSCOW, Nov. 30 - The fundamental credit outlook for the Ukrainian banking sector remains negative, reflecting the vulnerable state of the credit fundamentals of domestic banks in the medium term amid the ongoing financial and economic crisis, Moody's Investors Service said in a new Banking System Outlook on Ukraine.

Particular concerns relate to downward pressure not only on banks' capitalization and profitability as a result of deteriorating asset quality but also on their liquidity due to weak depositor confidence.