International credit rating agency S&P Global Ratings has raised Ukraine’s long-term foreign-currency sovereign credit rating from “SD” (selective default) to “CCC+”, with a stable outlook.
This was reported in an S&P release cited by LIGA.net.
The decision followed the completion in late December 2025 of an exchange of Ukraine’s GDP warrants for new securities maturing in 2032. The new instruments were also assigned a “CCC+” rating.
Ukraine had been rated “SD” since August 2024, after the start of negotiations on restructuring its external debt and the introduction of a moratorium on interest payments.
Ukraine completed the main restructuring of its external commercial debt totaling $20.5 billion (78% of its commercial external debt) in September 2024, but an agreement with holders of GDP warrants was reached only at the end of 2025.
S&P said that although a small portion of Ukraine’s commercial debt remains in default (less than 2.5% of total commercial debt), this is unlikely to have a material impact on the country’s ability to service its other obligations.
Following the 2024–2025 restructurings, Ukraine’s external commercial debt servicing needs have been significantly reduced to an average of about $1 billion per year over the next three years. The first principal repayment on external bonds is not expected until 2029.
The stable outlook reflects a balance between the government’s manageable debt burden and expectations of continued strong support from the European Union on the one hand, and high security risks stemming from the war on the other.
S&P expects high-intensity hostilities to continue through 2026.
The rating could be downgraded if the security situation deteriorates or if there are signs that further restructuring of commercial debt may be required. An upgrade would depend on an improvement in the security environment and medium-term macroeconomic prospects.
