Standard and Poor’s raises Ukraine crediting rating

Standard and Poor’s, an international rating agency, has raised the sovereign crediting rating of Ukraine on its liabilities in foreign currency from CCC+/C to B-/C, and on the liabilities in the national currency – from B-/C to B/B. The forecast on the ratings is “positive,” says a press release of Standard and Poor’s.

 

We believe that the recent formation of a new ruling coalition and the cabinet of ministers in Ukraine opens up new opportunities for the improvement of policy coordination and for the resumption of cooperation with the International Monetary Fund (IMF), said Franklin Gill, Standard and Poor’s crediting analyst.

 

Financial assistance under the IMF programme, amounting to 16.4 billion dollars, could be of much help for Ukraine in improving its crediting, monetary and economic stability, in financing the 2010 budget, as well as in improving the financial situation of the pension system and of the state-owned Naftogaz Company, PRIME-Tass reports.

 

The raising of the ratings reflects a greater possibility of the improvement of the coordination of political efforts, aimed at restoring the economic stability and especially the stability of the budget.

 

According to Gill, the “positive” forecast reflects the opportunities of the new government for improving cooperation with the presidential administration for the purpose of achieving a greater stability of the budget and maintaining in the future the stability of the financial sector, strongly undermined during the crisis, and of the real economic sector. The “positive” forecast points to the growth of influence of the factors promoting the raising of the rating in 2010-2011 on condition of the reduction of pressure exerted on the budget and on the balance of payments of the country.