S&P affirms Ukraine’s rating at “B” and a stable outlook
The international credit rating agency “Standard & Poor’s” has confirmed the long-term and short-term sovereign credit rating of Ukraine in foreign and national currencies at “B” and the rating of Ukraine on the national scale at “uaA”. The long-term outlook is stable.
The credit agency notes that Ukraine’s economic growth, balance of payments and public finances in 2020 exceeded analysts’ expectations. The volume of international reserves has also increased, which provides protection against potentially adverse external factors. However, the risks associated with the COVID-19 pandemic remain significant.
“The main reasons restraining an increase in the sovereign credit rating of Ukraine are the low level of per capita income and state institutions that need to be strengthened,” the statement said.
As it is noted, the constant implementation of reforms helps the Ukrainian government to enter the commercial borrowing markets and receive concessional financing from international financial institutions. However, the health situation remains difficult and vaccination in Ukraine remains at an earlier stage than in most European countries. This reinforces the potential risks to the agency’s baseline forecast for an accelerated economic recovery.
S&P analysts predict Ukraine’s GDP growth by 4% in 2021.
“It is good that this year, the second leading international credit rating agency has affirmed Ukraine’s sovereign rating and left a stable outlook. Ukraine is withstanding the economic challenges caused by the COVID-19 pandemic better than other developing countries and continues to pursue policies aimed at strengthening the macroeconomic situation in the country “, – commented the Minister of Finance of Ukraine Serhiy Marchenko.
Earlier, S&P reaffirmed Kyiv’s rating at “B” with a stable outlook.
Let us also remind that Ukraine has risen by 2 positions in the international rating of passports.