Ukraine Faces Deeper Credit Rating Cut by S&P Global
Ukraine’s Financial Troubles
S&P Global has stated that Ukraine’s default on external commercial obligations is highly likely, leading to a further downgrade of its long-term foreign currency credit rating to “CC” from “CCC.” The country is expected to initiate debt restructuring discussions with private creditors soon, aiming to complete the process by mid-year.
Impact of Russia’s Invasion
Following Russia’s invasion of Ukraine in February 2022, the region has witnessed the deadliest conflict in Europe in over seven decades. This has resulted in significant damage to both physical infrastructure and human capital, casting uncertainty over Ukraine’s medium-term economic prospects.
S&P Global’s Outlook
S&P Global’s negative outlook on Ukraine’s foreign currency credit rating reflects the ongoing challenges faced by the country. The agency emphasizes the need for cautious optimism in assessing Ukraine’s economic recovery amid the current crisis.
