S&P Global Ratings on September 27, 2019, raised its global scale long-term foreign and local currency sovereign ratings on Ukraine to 'B' from 'B-' and its Ukraine national scale ratings to 'uaA' from 'uaBBB'. It affirmed the short-term ratings at 'B'.

The outlook is stable, the rating agency said on its website.

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"The stable outlook reflects our expectation that Ukraine's new government will preserve the macroeconomic reforms of recent years while the economy recovers and general government debt relative to GDP declines. As a result, Ukraine should retain access to domestic and international capital markets, allowing it to meet commercial debt repayments through 2020," it said.

S&P analysts say they view positively the new government's intention to improve the business environment and lift the moratorium on the sale of agricultural land. "In our opinion, these measures could pave the way for higher foreign investment inflows into Ukraine, boding well for the economy's growth and external leverage," they said.

The rating agency says it could consider a positive rating action if it sees improvements in growth, fiscal, and external metrics beyond its expectations.

It could also consider raising the ratings if inflation converges toward the NBU's target, or if credit growth in real terms picks up and capital controls are lifted.