Credit agencies raise Ukranian rating

The credit rating of Ukraine was raised on Wednesday by Standard & Poor’s, bringing S&P’s ratings in line with that of Fitch and a notch better than Moody’s rating.

Now, all three rating agencies assign a stable outlook to the country.

The S&P’s rating for foreign currency rose one notch, from B+ to BB- and its local currency rating was raised to BB from B+.

Ukraine’s economy has been growing for the past several years. Growth has slowed down since the administration of Viktor Yushchenko took office, however, over the issue of who actually owns vital industries.

This uncertainty has affected business investment. S&P’s took its action in upgrading Ukraine’s credit rating despite this, and even though the government still has to find solutions to rising inflation and issues of government spending.

An analyst with S&P’s was quoted as saying that the change in Ukraine’s credit rating was prompted by the fact that the new administration supports democratic values and the rule of law and will institute political, institutional, and structural reforms that will create an open political system and a market economy.

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