Ukraine credit rating upgraded

Standard & Poor’s upgraded Ukraine’s credit rating on Wednesday.

The country’s foreign currency rating went up one notch, from B+ to BB-, while its local currency rating was elevated from B+ to BB.

The action by S&P’s brought their foreign currency rating to the same level assessed by Fitch and a notch higher than Moody’s rating.

All the rating agencies now attribute a stable outlook to the country.

S&P’s took its action even though the government of Ukraine, led by Viktor Yushchenko, must still deal with rising inflation and issues of government spending.

Still, an analyst with S&P’s was quoted as saying that the change in Ukraine’s credit rating was prompted by a new administration that supports democratic values and the rule of law and which stands to lead political, institutional, and structural reforms that will create an open political system and a market economy.

Ukraine’s economy has been growing for the past several years, although growth has slowed down since the new administration took office over uncertainty as to who owns vital industries.

This uncertainty has affected business investment.

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