Credit rating Agency Standard & Poor’s raised Ukraine’s rating from B – to B, Outlook is still stable.
“27 Sep 2019 credit rating Agency Standard & poor’s upgraded long-term sovereign credit rating of Ukraine in foreign and national currency to “b” from “b -” and the rating of Ukraine on the national scale to the level of “uaA” with “uaBBB”. The Agency also affirmed the short-term sovereign credit rating at “b”. The Outlook is stable,” – said in the message.
In KMU recalled that the stable Outlook reflects the Agency’s expectations that the new Government will continue to implement macroeconomic reforms carried out in recent years.
“At the same time, the economy is picking up and the ratio of public debt to GDP is reduced. The Agency notes that Ukraine should maintain access to domestic and international capital markets, allowing the country to repay commercial borrowings for 2020”, – stated in the message.
Analysts at Standard & poor’s positive assessment of the intention of the new government to improve the business climate and remove the moratorium on sale of agricultural land. According to the Agency, these measures can lead to an increase in the volume of foreign investments in Ukraine, contributing to the growth of the economy and reduce vulnerability to external challenges.
A further rating upgrade is possible if the growth of the economy, and indicators of fiscal and external economic sectors will exceed the forecasts. The Agency is also considering the possibility of increasing the sovereign rating if inflation close to target, or if the lending in the real sector will continue to grow and restrictions on the movement of capital will otmenen.