Global credit rating agency Standard & Poor’s has affirmed Ukraine’s long-term and short-term sovereign credit ratings in foreign and national currencies at the level of “B” and Ukraine’s national scale ratings at the level of “uaA.” The long-term outlook is stable.
S&P notes that Ukraine’s economic growth, balance of payments and public finance standing in 2020 exceeded analysts’ expectations. The volume of international reserves increased, securing protection against potentially adverse external factors. However, the risks associated with the COVID-19 pandemic remain significant.
The main reasons hindering the increase in Ukraine’s sovereign credit ratings are the low level of per capita income and the state institutions in need of strengthening.
Ongoing reforms help the Government of Ukraine enter commercial borrowing markets and receive concessional financing from international financial institutions. However, the situation in the healthcare sector remains difficult, raising the potential risks to the agency’s baseline forecast for an accelerated economic recovery.
S&P analysts forecast Ukraine’s GDP growth at 4% in 2021.
“We are glad that already the second leading international credit rating agency has affirmed Ukraine’s sovereign ratings and left a stable outlook this year. Ukraine overcomes the economic challenges posed by the COVID-19 pandemic better than other developing countries and pursues policies aimed at strengthening the macroeconomic situation in the country,” commented Serhiy Marchenko, Minister of Finance of Ukraine.