S&P Raised Ukraine's Ratings To 'B' On Improved Macroeconomic Management; Outlook Stable

On Sept. 27, 2019, S&P Global Ratings raised its global scale long-term foreign and local currency sovereign ratings on Ukraine to 'B' from 'B-' and its Ukraine national scale ratings to 'uaA' from 'uaBBB'. The agency affirmed the short-term ratings at 'B'. The outlook is stable.

The stable outlook reflects the agency's expectation that Ukraine's new government will preserve the macroeconomic reforms of recent years while the economy recovers and general government debt relative to GDP declines. As a result, Ukraine should retain access to domestic and international capital markets, allowing it to meet commercial debt repayments through 2020.

S&P could consider a positive rating action if there are improvements in growth, fiscal, and external metrics beyond our expectations. Rating agency could also considers raising the ratings if inflation converges toward the NBU's target, or if credit growth in real terms picks up and capital controls are lifted.

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