S&P upgrades Ukraine's rating to CCC+ after debt restructuring

The international rating agency S&P raised Ukraine's long-term foreign currency rating from SD (selective default) to CCC+. The decision was made in connection with the completion of the restructuring of Ukraine's debt, according to a statement on the agency's website.

“The short-term foreign currency rating has been upgraded from SD to C. The sovereign ratings in national currency have been confirmed at CCC+ and C. The outlook for long-term ratings is stable,” S&P explained.

Earlier this week, Fitch upgraded Ukraine's long-term rating from RD to CC. The agency also explained this by the completion of the debt restructuring procedure.

Earlier, S&P and Fitch downgraded Ukraine's ratings to SD and RD (selective default and limited default), respectively. The agencies considered that the Ukrainian authorities allowed a default by agreeing with Eurobond holders to defer payments on public debt for 24 months.

In mid-July, Ukrainian authorities asked foreign creditors to freeze foreign debt payments for two years. The latter, including Canada, France, Germany, Japan, the United Kingdom and the United States , agreed. Kyiv received a deferral from August 1 to the end of 2023 with the possibility of a year extension.

At the end of June, Bloomberg reported that by September 1, Ukraine should pay $1.41 billion in debts. According to Oleg Ustenko, economic adviser to the President of Ukraine, the country's budget deficit could reach $50 billion, or 30-35% of GDP, by the end of the year.