Fixed Income

September 04, 2017

Ukrainian sovereign Eurobonds continued to rise in value last week after rating agency Moody’s upgraded the country’s credit rating by one notch to Caa2 and assigned a positive outlook for the rating. Moody’s said it expects modest annual GDP growth in Ukraine for 2017-2018. An encouraging message also came from the Finance Ministry, which reported a USD 1.0bn budget surplus for January-June 2017, compared to a USD 1.9bn deficit in the same period of 2016. The balance of funds on the Ukrainian State Treasury Service’s single account as of Sept 1 was estimated at UAH 61.2bn (USD 2.35bn), representing the highest dollar-denominated level since all the way back in 2007. An IMF mission will arrive in Kyiv in mid-September to evaluate the country’s loan program.