The national borrowing rating was raised from CCC+/C to BB/BB-.
The long-term rating is given a stable outlook.
The agency directly connects this decision with the agreement reached by Ukraine with international creditors on debt restructuring.
“The stable outlook reflects our view of Ukraine’s reduced public debt servicing costs and our expectations for stable international financial support, despite risks associated with the ongoing war,” the agency said in a statement.
According to S&P’s calculations, Ukraine’s foreign debt servicing costs due to its restructuring in 2022-2024 decreased from 16 billion up to 10 billion US dollars, and during this period it will have to pay the main parts of the official debt (mainly to the International Monetary Fund and the World Bank), as well as to the holders of domestic loan bonds denominated in foreign currency.
The agency predicts that the Ukrainian economy may shrink by 40 percent this year.
Ukraine On August 10, international creditors approved its request to defer the debt for the repayment of 13 international debt securities issues for a total of 22.6 billion for two years. US dollars, including two 1.5 billion dollar nominal value issues sold with return guarantees.
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