The international rating agency S&P Global Ratings has confirmed the long-term sovereign ratings of Ukraine in foreign and national currency on the global scale at “B” level, ratings on the national scale at “uaA” and short-term ratings at “B”, the outlook for long-term ratings is stable.
“Ukraine’s growth, balance of payments and public finances exceeded our expectations in 2020. The adequacy of reserves has improved, which provides protection against possible adverse external events, including further delays in the payment of concessional loans,” the agency explained the rating confirmation on Saturday night.
At the same time, S&P noted that epidemiological considerations continue to pose a serious risk.
The agency indicated that it could raise the ratings over the next year if Ukraine’s external liquidity indicators and the consolidation of state finances are better than projected today, including as a result of a more active economic recovery.
At the same time, the ratings could be downgraded in the event of disruptions to concessional financing from international financial institutions or from capital markets, which would call into question the government’s ability to meet its debt service obligations, S&P said.
“Such disruptions may occur if the government abandons key reforms, such as ensuring the independence of the National Bank of Ukraine (NBU), which acts as a monetary authority and regulator of the financial system,” the message reads.
