S&P Confirms Ukraine's Rating At BB-.

Standard & Poor’s confirmed its long-term foreign and local currency credit ratings for Ukraine at BB- and BB, respectively, and its short-term ratings at B, all with a stable outlook. S&P said the growth, exports and foreign direct investment were outperforming expectations and GDP was forecast to grow in 2006 at 5.6%, with a “moderate” slow-down expected in 2007. S&P said the political situation had stabilized but the new government was unlikely to pursue radical structural reforms and still faced the threat of large gas price increases. It is disappointing but rather expected action as RAs are tending to be too conservative towards Ukraine. Though S&P underline that the economy continues to outperform their expectations, Foreign direct investment, export performance have also surpassed earlier estimates and the political environment has stabilized but still assign the same rating they did in May 2005.