Fitch upgrades Ukraine to 'B'; outlook positive

In a press release, Fitch notes that Ukraine has demonstrated timely access to fiscal and external financing, improving macroeconomic stability and declining public indebtedness, while a shortened electoral period has reduced domestic political uncertainty. Expected macroeconomic policy continuity, the new government's strong stated commitment to structural reforms and engagement with IFIs mean that Fitch expects further improvements in creditworthiness.

The main factors that could, individually or collectively, lead to an upgrade are: increased foreign currency reserves and external financing flexibility; improvement of structural indicators, such as governance standards; higher growth prospects while preserving improved macroeconomic stability; further declines in government indebtedness and improvements in the debt structure.

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