S&P raises Ukraine’s ratings on stabilising economy

18 May 2010 – S&P on Monday lifted the foreign-currency sovereign credit ratings on Ukraine to B/B, from B-/C, and the local-currency ratings to B+/B, from B/B, citing its commitment to economic stability and improving external liquidity position.
Ukraine’s improving external relations with key trading partners, a 30% cut in 2010 rates on gas negotiated with Russia, which is expected to reduce the cost of energy imports by just under 3% of GDP on an annualised basis, as well as talks with the IMF that will likely result in a funding programme renewal. This are all signs of the country’s better policy coordination, S&P said explaining the rating hike.
Source: M2