“Ukraine has improving macroeconomic stability and declining public indebtedness, while a shortened electoral period has reduced domestic political uncertainty. Expected macroeconomic policy continuity, the new government’s strong stated commitment to structural reforms and engagement with IFIs mean that Fitch expects further improvements in creditworthiness. Fitch Ratings raises Ukraine’s long-term issuer default ratings (IDRs) in foreign and national currencies from B- to B +. The outlook is positive,” the agency reported.
The Fitch Ratings also noted that Ukraine has demonstrated modern access to fiscal and external financing, improving macroeconomic stability and reducing public debt.
“We expect government debt to decline to 47.9% of GDP (55.8% including guarantees) by end-2019, down almost 20pp from the peak of 69.2% (80.9% including guarantees) in 2016 and below the current 57.5% ‘B’ median, and reach 44.4% by 2021. Government debt dynamics are highly exposed to currency risk as 67% is foreign currency denominated, but greater non-resident participation in the local bond market will help increase the share of local currency debt and extend maturities., “the agency said.
Note that the Fitch agency evaluates the credit rating of borrowers in more than 150 countries of the world on a standardized scale, carries out research and analysis of commercial and government organizations.