S&P upgrades Ukraine to ‘B-/C’

Standard & Poor’s announced yesterday that it raised Ukraine’s foreign currency sovereign credit rating to ‘B-/C’ from ‘CCC+/C’ and its local-currency sovereign rating to ‘B/B’ from ‘B-C.’ The outlook on the ratings is positive. In its rationale for the decision, S&P said that the once-high level of political risk in Ukraine has receded and its external funding prospects have improved. Fitch Ratings Agency noted earlier this week that Ukraine could see positive rating action in the second half of the year if a pro-presidential parliamentary majority passes a budget that the International Monetary Fund approves and Ukraine resumes its loan program with the IMF.