S&P upgrades Ukraine rating to B

S&P Global Ratings raised its long-term foreign and
local currency sovereign ratings on Ukraine to B from B- with a Stable ratings
outlook, the agency reported on Sept. 27. The ratings are supported by
improving government finances, the declining general government debt-to-GDP
ratio, as well as Ukraine’s ongoing implementation of reforms, S&P
commented. The agency forecasts Ukraine’s economy will grow 3.2% in 2019 and
3.0% in 2020, while the government debt-to-GDP will decrease  to 52.5% in
2020 from 60.9% in 2018. Risks to S&P’s growth projections include a
slowdown in external demand for Ukraine’s key commodity exports and a flare-up
of geopolitical tensions with Russia.

Alexander Paraschiy: S&P is
the second among the Big Three ratings agencies to upgrade Ukraine this month,
after a similar move by Fitch on Sept. 6.
This is positive for Ukraine’s perception among investors, and we expect that
Moody’s, which rates Ukraine two notches below S&P and Fitch, will adjust
its Ukraine rating soon as well. Also we expect S&P will upgrade its
ratings of other covered companies, including Ukrainian Railways (currently
B-), Metinvest, Kernel and MHP (currently B).