S&P in turn downgrades Ukraine's rating

this war will last

we must prepare for it

The Russian decision to launch a military attack on the country adds significant negative risks to its economic prospects, jeopardizing the service of the debt

Ukraine is now facing possible disruptions to some key economic sectors, such as its important agricultural exports and gas pipeline network

Russia's military invasion has resulted in heightened risks to Ukraine's external and public finances, financial stability and political stability

uncertainty about the ultimate goals of Russia, the duration, scope and intensity of the conflict, and its consequences

Until now, Ukraine had a credible macroeconomic policy framework (...), a history of multilateral support, favorable human development indicators, a net external creditor position of 9% of GDP, and low public debt

Ukraine has quite low external liquidity compared to sovereign external debt service of $4.3 billion in 2022, (...) expected capital outflows will further weaken its external financing position

the shock to domestic confidence is expected to have a severe impact on economic activity and the currency, fueling inflationary pressures and macroeconomic volatility

public finances are expected to suffer from higher military spending and (of) the possibility of refinancing domestic debt (which) will be severely limited

high likelihood of a prolonged period of political instability, with regime change as President Putin's likely objective, creating heightened political uncertainty and potentially weakening the capacity of the government. "

'Ukraine to repay its debt

represent a further increase in the geopolitical risks already identified by Moody's, which are now accompanied by additional and more severe sanctions against Russia