Ukraine’s ranking by S&P has surpassed all expectations
S&P Global Ratings is globally recognized as one of the most accurate credit ratings. Its opinion is based on information. The company’s rating indicates the issuer’s level of self-sufficiency and its ability to independently fulfill its financial obligations. Over the years, S&P Global Ratings has gained recognition. Its conclusions are listened to by investors around the world. They trust the transparent differentiation of issuers and can assess the creditworthiness of each of them. What does S&P Global Ratings report about Ukraine? Ukraine has received a long-term rating with a stable outlook at the level of BB, according to the forecasts of the agency. Stability was confirmed both in hryvnia, the national currency (at the level of A), and in foreign currencies. It is reported that Ukraine is able to fulfill its debt obligations in time. The short-term ratings were confirmed at level B. The company justified its conclusions by the fact that the situation in our country has improved thanks to the sufficiency of reserves and the balance of payments. And this, in turn, negates the possibility of arrears in payments of soft loans. The agency emphasized that the epidemiological situation in the country is unstable. And this represents a risk. S&P also said it could improve its rating in 2022 if the government maximally stabilizes the country’s economy. If, however, there will be unstable actions in the field of concessional financing from international financial institutions, the ratings will fall. S&P agency forecasts The international rating agency observes positive dynamics and forecasts the following changes:
- Ukraine’s GDP growth to 4% after its upsetting decline in the previous crisis year. Further it is forecasted to hold at the level of 3.5%;
- Stabilization of the economy in the second half of 2021: government support and increase of investments in Ukraine, growth of pensions;
- Strengthened support by Western countries of the political line of President V. Zelenskyy;
- Stabilization of relations with the IMF and the possibility of receiving a tranche this year;
- Increase in the level of investment up to 9.4% of GDP;
- Stabilization of the hryvnia exchange rate and lower inflation;
- The major risk is that half of the country’s population remains unvaccinated — this could lead to outbreaks of the epidemic.
