S&P gives Ukraine ratings boost

US-based international ratings agency Standard and Poor’s (S&P) has upgraded the long-term foreign and local currency sovereign ratings of Ukraine from ’B-’ to  ’B’, reaffirming the country’s economic outlook as stable, the Ukrainian press has reported.

“The stable outlook reflects our expectation that Ukraine’s new government will preserve the macroeconomic reforms of recent years while the economy recovers and general government debt to relative GDP declines,” wrote Ukrainian news agency UNIAN, quoting S&P’s statement.

“These measures could pave the way for higher foreign investment inflows into Ukraine, boding well for the economy’s growth and external leverage,” the ratings agency said, discussing the Ukrainian government’s plans to lift a more than a decade-long moratorium on purchasing farmland in the country and improving the Ukrainian business environment.

The Ukrainian parliament is expected to approve a law on abolishing the moratorium in October.

S&P’s analysts added that another ratings boost will be possible if the fiscal conditions of the Ukrainian economy, the country’s external economic climate and conditions for growth are improved or the inflation targets of the National Bank of Ukraine for 2019 are achieved.

Photo: The Economic Times