Page 55 - UKRRptJun21

country had was Ca (Negative) in March 2015 in the wake of the Euromaidan protests that ousted president Viktor Yanukovych. The highest the country has scored was B1 (positive) in August 2008 as the entire region boomed before the global financial crisis struck that autumn.
Fitch rates Ukraine at B- on its foreign currency debt with no outlook indicated. The local debt is also rated at B- (none).
Fitch has become more cautious on Ukraine having removed its positive outlook call in December 2018. But the ratings have general recovered from Fitch “restricted default” rating in October 2015, following the Maidan events. The highest rating the country has had from Fitch was a BB- (positive) first awarded in May 2005 and again in October 2006, during a year-long investment frenzy when foreign banks bought up banks in the country believing the country was about to take off.
Standard & Poor’s (S&P) rates both Ukraine’s foreign and local debt at B-
with stable outlook.
S&P last upgraded Ukraine’s rating from Caa2 (positive) in August 2017. The rating nadir was Ca (negative) awarded in March 2015 following the Maidan events. Its zenith was B1 (positive) awarded in August 2008 at the apex of the region-wide boom.
8.5 Fixed income
Ukraine’s government has so far raised less from bond sales than it needs to repay its debts as the Finance Ministry is waiting for better borrowing conditions later in the year, according to analysts.
While the government has to pay UAH450bn ($16.4bn) to bondholders in 2021, it only obtained around UAH185bn, including cash from a Eurobond sale, between January and April, Kyiv-based investment firm ICU said as cited by Bloomberg.
While by May the Ministry had raised more cash in hryvnia than it repaid, “They should have attracted a bit more,” according to ICU’s analyst Taras Kotovych says
“Otherwise we could see a repeat of the situation from last year when the government had to borrow in emergency in the fourth quarter, which led to higher rates”
Finance Ministry raised UAH15-17bn in April-May and another bond auction is planned for May 25. Approximately, UAH40bn has to be borrowed on average in each of the following months, according to calculations.
The ministry raised the equivalent of UAH14.2b ($517mn) at the auction on May 18, ten times the amount it attracted in the previous auction
Ukraine made it first payment – $41mn – for GDP warrants issued as part of the public debt restructuring in 2015 on May 31. The trigger for repayment was Ukraine’s GDP growth of 3.2% in 2019. Last summer, seeing the 3% barrier falling, the Finance Ministry bought back $330mn of the warrants, about 11% of the outstanding total. Ukraine is liable for paying on these warrants through 2040.
55 UKRAINE Country Report XXXX 2018 www.intellinews.com