OREANDA-NEWS. March 12, 2010. On 11 March 2010, the international rating agency Standard&Poors upgraded Ukraine’s sovereign ratings in foreign currency (from CCC+/C to B-/C), as well as in the national currency (from B-/C to B/B). The ratings outlook was changed from “stable” to “positive”. The main reason of the rating upgrade was the formation of the new coalition in Parliament and the new government having been formed, which is expected to reform the economy of Ukraine. The agency also expects the renewal of the collaboration between the IMF and Ukraine.

Millennium Capital sees the news to be positive for both Ukraine’s sovereign Eurobonds and Eurobonds of Ukrainian issuers, their indexes (Euro C bonds) increasing by 0.9% and 0.7%, respectively, on 11 March 2010. Millennium Capital expects that the political changes and the rating upgrade will increase both foreign direct and portfolio investment inflows to Ukraine estimated at USD 7bn in 2010.