S&P agency raised Ukraine’s credit rating

International rating agency S&P Global Ratings has upgraded Ukraine’s long-term sovereign credit rating from SD (limited default) to CCC+ (vulnerable to default and dependent on favorable conditions), with a stable outlook.

Ukraine’s rating was upgraded from SD to CCC+ following the completion of the restructuring of GDP warrants, S&P explained its decision to review the rating.

“S&P Global Ratings made this decision following the completion of the exchange of Ukraine’s GDP warrants for $2.6 billion for new Class C bonds and existing Class B bonds at the end of December 2025. Previously, the securities were in default after a missed payment of $0.67 billion in June 2025,” the agency said in a statement.

S&P noted that while a small portion of Ukraine’s commercial debt remains in default, these obligations account for less than 2.5% of Ukraine’s total outstanding commercial debt and less than 1% of total debt. In addition, negotiations are ongoing with creditors to restructure these debts.

Ukraine’s external commercial debt service needs have significantly decreased and are averaging $1 billion per year over the next three years, with the first principal payment on foreign bonds due no later than 2029.

The agency also noted Ukraine’s significant foreign exchange reserves, which reached a record $57.3 billion at the end of 2025, as well as the allocation of a €90 billion EU loan to Ukraine.

The agency believes that the stable outlook allows Ukraine to balance acceptable debt service needs over the next 12 months.

“Nevertheless, our CCC+ ratings reflect our view that Ukraine’s ability to meet its financial obligations remains vulnerable and depends on favorable financial and economic conditions, including the development of the war and continued support from allies,” S&P said.

The agency estimates that Ukraine’s post-war reconstruction will cost at least $500 billion (2.5 times its annual GDP).

The next publication of S&P’s sovereign rating for Ukraine is scheduled for March 6, 2026.

Tags: Ukraine