S&P upgrades Ukraine to ‘B/B’

Standard & Poor’s upgraded Ukraine’s foreign currency sovereign credit ratings to ‘B/B’ and local currency ratings to ‘B+/B,’ the agency said in a note yesterday. The outlook on the ratings are stable. S&P said the move was backed by its view of improved policy coordination, stabilization of external liquidity and expectations of an increase in forex reserves relative to short-term debt, and moderate government debt burden. At the same time, S&P noted that improvement in the fiscal position of Naftogaz of Ukraine and social security system could lead to a further upgrade, as could a reduction in Ukraine’s vulnerability to terms-of-trade and other external shocks.