The international rating agency R&I has affirmed the rating of Ukraine as an issuer in foreign currency at “B+” with a stable outlook.
“Ukraine’s economy is heading for recovery after the coronavirus-induced contraction. The fiscal deficit has widened due mainly to economic measures, but is expected to narrow in 2021 from a year earlier. Furthermore, a rise in the government debt ratio will most likely be modest. Since the government plans to move ahead with fiscal consolidation from 2022 onward, its fiscal position would basically improve, in R&I’s view,” the agency said on its website.
“Despite a delay in disbursements under the financial support program of the International Monetary Fund (IMF), the government has ensured stable funding. As the government commits to continue a talk with the IMF, progress in structural reforms and loan disbursements can be envisaged to a certain extent. Based on these considerations, R&I has affirmed the Foreign Currency Issuer Rating at B+,” the report says.
“Given slow progress in vaccination compared to other European countries, a resurgence of the coronavirus may hinder an economic recovery, which warrants attention. In the medium to long term, the key to stable, high growth lies in the reinforcement of institutional frameworks for reducing corruption and ensuring compliance, for instance,” it said.
