Standard & Poors joined Fitch in boosting Ukraine’s credit rating on Friday, following a two-year remission of the country’s foreign debt by creditors last week.
According to S&P Global, upgrading the creditworthiness rating for external debt to CCC+ illustrates Ukraine’s commitment to major international financial help, along with declining foreign currency reserves, despite the fact that they remain relatively large.
As a result, the government’s cash position and, more generally, its ability to discharge commercial obligations, including those denominated in foreign currencies, appear to be manageable in the near term, she noted.
However, S&P added that the decision was based on the assumption that the US and the EU will continue to help Kyiv in the coming months, and that a loan arrangement with the International Monetary Fund might reduce pressure on Ukraine.
Fitch upgraded Ukraine’s credit rating on Thursday, after the two agencies reduced it to default due to the restructuring agreement. The government’s ability to make payments on time is mostly due on factors outside its control.
According to the group, the country’s GDP would fall by 40 percent this year.
S has improved Ukraine from the default setting.
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