Standard & Poor’s raised long-term issuer default ratings of Ukraine in foreign currency to “B-/B” from “SD/D” and in local currency to “B-/B” from “CCC+/C on Monday.

“We view the risk of another default in the next two to three years as diminished due to the Ukrainian authorities’ commitment to the reforms set out in the International Monetary Fund (IMF) program” said the agency.

The change in rating is due to the completion of the Ukrainian government negotiations on restructuring of external commercial debt. At the same time S&P stated that the stable forecast suggests the Ukrainian authorities continue the course toward economic reforms.

S&P analysts predict that Ukraine’s real GDP will decrease by approximately 15% in 2015 after the decline of 6.8% last year. In 2016 they expect growth of 2%, in 2017 – 3.5% and in 2018 – 4%.

The growth rate of consumer prices will rise to 55% this year following the increase of 12.2% in 2014. In 2016, inflation will slow down to 20% in 2017 – to 14% and in 2018 – to 9%.

Sadko Consulting finds such changes in world ratings as positive sign of economic recovery and further business development in Ukraine. Please do not hesitate to contact us.