Page 57 - UKRRptDec20

Ukraine’s credit ratings have been improving but the country is still rated junk by the three main agencies.
Moody’s rates Ukraine at Caa1​ with stable outlook on its foreign currency debt. The local debt is also rated at Caa1.
Moody’s last upgraded Ukraine from Caa2 (Positive) in August 2017 as the country emerged from an economic meltdown that year. The lowest rating the 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
Foreign investment in Ukrainian government hryvnia bonds has dropped by almost one third since the start of the year, ​according to the National Bank of Ukraine. Foreigners currently hold UAH78.6bn, the equivalent of $2.7bn, down 32% since January.
Ukraine has the potential to attract as much as $73bn in green bonds
during this decade, Deputy Energy Minister Yaroslav Demchenkov says, citing calculations by the World Bank’s International Finance Corporation. The Ministry and the State Energy Efficiency Agency are drawing up a draft concept for a green bonds market. The Ministry press service notes that the government and municipalities, financial and non-financial corporations can issue green bonds. Funds can be directed to alternative energy, energy conservation, recycling, and mass transit.
President Zelenskiy is about to sign a bill that would provide state guarantees for ‘green bonds’ ​to help pay Ukrenergo’s overdue debt to solar and wind producers, Acting Energy Minister Yuriy Boyko told reporters yesterday. With the overdue debt approaching $1bn, the government might launch $400mn worth of green bonds, he said. Later in the day, a Finance Ministry investor relations manager Alla Danylchuk emailed Bloomberg, saying the Finance Ministry has no plans to issue green bonds.
57​ UKRAINE Country Report​ December 2020 ​ ​www.intellinews.com