Page 53 - UKRRptMay21

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
The NBU amended rules on corporate issues of Eurobonds to improve conditions for issuers introduced the following amendments:
A €2mn annual cap was lifted off transactions to distribute income on and redeem eurobonds, as well as other issuer transactions for the purpose of placing such securities;
Foreign currency is allowed to be bought to be deposited in the issuer's own account with a Ukrainian bank until the eurobond liabilities mature.
"Ukrainian economy requires additional funds for development, more than ever," Yuriy Heletiy, NBU Deputy Governor said as cited by Unian. "One of such sources are foreign borrowings."
Ukraine's GDP warrants and Eurobonds reacted positively to news o April 21 that Russia will start to withdraw its troops from Ukraine’s borders. Warrants jumped from 102.5% to 104.4%, and Eurobonds rose by 0.8-2.3 percentage points, depending on maturity dates.
Ukraine’s Finance Ministry raised UAH4.6bn at its weekly bond auction
on April 20 after raising UAH1.6bn equivalent at the auction last week. The auction receipts came from the placement of 3M, 12M, 20M and 3Y local currency bonds.
53 UKRAINE Country Report May 2021 www.intellinews.com