S&P considered that the new agreement with the IMF will help Ukraine to meet its large external debt.
International rating Agency Standard & Poor’s Global Ratings has affirmed the long-term and short-term sovereign credit ratings of Ukraine for obligations in foreign and national currency at the level of b/V.
This is stated in a press release from the Agency.
It is noted that the forecast – “stable”. It reflects the opinion of analysts, the S&P that the current program for increased funding of the IMF will be terminated, but instead will include a new program for a period of 14 months. It will contribute to the stabilization of the macroeconomic policy of Ukraine in 2019.
At the same time was affirmed the country’s rating on the national scale to “uaBBB”.
“Despite the fact that Ukraine has not received funding in the framework of the International monetary Fund from March 2017, we expect that the new programme announced by IMF is approved by the end of 2018. We believe that the new agreement with the IMF will help Ukraine to meet its large external debt obligations, the repayment of which begins next year, and at the same time pursue a balanced macroeconomic policy in the year of presidential and parliamentary elections”, – stated in the message Agency.
Negative impact on ratings can have a situation in which problems with financing from international donor organizations and/or the inability of the government to attract financing in the capital markets in the next few months will jeopardize its ability to service large external debt next year, experts say the Agency.
Positive rating action is possible if Ukraine will demonstrate more significant than expected economic growth amid improving fiscal indicators that will allow the national Bank to further monetary limits, and “if we come to the conclusion that the situation is beyond the control of the government in the region to the East of the country – stabilized and further escalation of tension is not expected,” the report said.
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