Fitch revises Ukraine's outlook to positive, affirms at 'B'.

Fitch Ratings revised the Outlook on Ukraine's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'B'.

"On August 6, 2021, the international credit ratings agency Fitch Ratings revised the outlook on Ukraine's long-term foreign-currency issuer default rating (IDR) from stable to positive and affirmed the IDR at 'B'," the press service of the Ministry of Finance of Ukraine informs.

"Ukraine's credit fundamentals have been relatively resilient to the coronavirus shock, and we expect public debt/GDP to fall in 2021 on the back of budget outperformance and recovering GDP. Foreign exchange reserves have trended up, and Ukraine has retained access to commercial and IFI external finance, despite uneven progress against the IMF stand-by arrangement (SBA)," reads the commentary by Fitch.

The analysts note a consolidation of the credible policy framework, underpinned by exchange rate flexibility, commitment to inflation-targeting, and prudent fiscal policy, which has supported greater macroeconomic stability and a marked reduction in general government debt since recovery from the 2014-2015 geopolitical and economic crises.

Fitch forecasts the general government deficit narrows 1.7pp in 2021, to 4% of GDP, below the government state deficit target of 5.1%. The general government deficit falls further to 3.2% of GDP in 2022, and 2.9% in 2023. General government debt is projected to fall 3.9pp in 2021 to 50% of GDP (57% including guarantees). This is supported by deficit reduction, growth in nominal GDP, and 3% appreciation of the hryvnia against the US dollar.

"We welcome Fitch Rating's decision to revise Ukraine's IDR rating outlook from stable to positive. Despite all the difficulties caused by the coronavirus pandemic, during the year of peak payments on government debt, we managed to reduce credit risks. This has been achieved through enhanced macroeconomic stability. Ukraine has once again shown better economic performance than most of its peers. We continue pursuing the policy of fiscal consolidation, which should lead to greater stability of public finances of Ukraine and, as a consequence, better credit rating of Ukraine in the future," commented Minister of Finance of Ukraine Serhiy Marchenko.

ol

UkrInform

Ukraine and world news. Ukrinform brings the latest news, daily news, political news, business news, social news, cultural news, sports news, international news

https://www.ukrinform.net/

Related news
Germans vote to elect new chancellor

Germans vote to elect new chancellor

German voters are choosing a new parliament in an election that will mark the end of Chancellor Angela Merkel's leadership after 16 years in power. CBS News foreign correspondent Chris Livesay joins Lana Zak on CBSN to discuss the issues important...

Germany's CDU leader Armin Laschet 'not happy' with election exit poll result.

Germany's CDU leader Armin Laschet 'not happy' with election exit poll result.

Germany's conservative CDU leader Armin Laschet said his party could not be satisfied with the exit poll results, but pledged to do everything possible to build a conservative-led coalition. SUBSCRIBE to our YouTube channel for more videos: Follow...

What's at stake for Germany as Chancellor Angela Merkel leaves world stage?.

What's at stake for Germany as Chancellor Angela Merkel leaves world stage?.

Germany's parliamentary elections are underway, and the exit of chancellor Angela Merkel could have a massive influence on politics in Europe and around the world. Jeffrey Rathke, president of the American Institute for Contemporary German Studies...

Nunes drags Dems for 'poisoning' Americans with Russia collusion lies.

Nunes drags Dems for 'poisoning' Americans with Russia collusion lies.

Rep. Devin Nunes, R-Calif., weighs in on the 'never-ending story' of investigating the Russia probe. #FoxNews #SundayMorningFutures Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour ...

SDP leader Olaf Scholz says people in Germany voted for 'change'.

SDP leader Olaf Scholz says people in Germany voted for 'change'.

SDP leader Olaf Scholz said many people in Germany voted for his party because they 'wanted a change in government'. He was speaking to supporters at his party's HQ in Berlin after the polls had closed. SUBSCRIBE to our YouTube channel for more vi...

Transport Secretary urges people not to panic buy petrol.

Transport Secretary urges people not to panic buy petrol.

Transport Secretary Grant Shapps is insisting that queues at the petrol pumps will continue if people carry on buying fuel when they don't need it. But after nearly two years of uncertainty during the pandemic, will people might listen to the advi...