×
Please fill out the form below to proceed to the payment system
Expert commentary

Sovereign Rating Increase Is a Good Signal for the Borrowing Market

02.09.2017 Last week, following the increase of Ukraine’s sovereign rating, Moody’s raised the ratings of Ukrainian corporate issuers.

The ratings of the nationalized ‘PrivatBank’, state ‘Oschadbank’ and ‘Ukreximbank’ was raised to the Caa2 level with a positive forecast, ‘Raiffeisen Bank Aval’s rating was raised to the Caa1 level with a positive forecast, ‘Pivdennyi’s was raised to the Caa3 level with a positive forecast and ‘Prominvestbank’s rating was raised to the Caa2 level with a positive forecast.

In addition, Moody’s has given a forecast for Ukraine’s economy: the annual GDP growth of Ukraine in 2017-2018 can amount to 2.5% on average.

Experts comment on this Ukrainian success guardedly. CASE Ukraine Research Center`s Executive Director Dmytro Boyarchuk has called the increase in the sovereign rating a good signal as the Ministry of Finance plans to enter the external borrowing market to end the year.

‘This may mean that the placement of new Eurobonds will be cheaper for us’, the expert explained. At the same time, Boyarchuk said that the issue of continuing cooperation with the International Monetary Fund and fulfilling the creditor`s conditions is still actual. In particular, the implementation of pension reform, the establishment of an anti-corruption court and the free land market.