Ukraine’s Sovereign Rating Upgraded by S&P Following $2.6 Billion Debt Restructuring Deal

S&P Global Ratings has upgraded Ukraine’s sovereign rating to “CCC+ ” from “SD ” following the country’s successful $2.6 billion exchange of GDP warrants for new securities, Reuters reported on January 23.

The S&P agency stated that restructuring a small portion of defaulted debt would not significantly impact Ukraine’s ability or willingness to meet its other debt obligations.

This upgrade follows a similar move by Fitch Ratings, with both agencies recognizing the importance of the restructuring deal. The transaction, which received over 99% approval from debtholders, marks a significant step for Kyiv in emerging from a debt default caused by Russia’s 2022 invasion, Reuters wrote.

Ukraine could also secure a tariff-free free trade zone with the US once the war ends—a move that could significantly accelerate the country’s economic recovery, according to a US special envoy Steve Witkoff.

Witkoff said the idea has been discussed at the highest levels in Washington and could fundamentally reshape Ukraine’s postwar outlook.

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Despite the strong international support of Ukraine, S&P expects high-intensity military activity to continue throughout 2026 and has maintained a stable outlook for Ukraine, citing manageable government debt service and ongoing international financial support, according to Reuters.

Previously, it was reported that Ukrainian President Volodymyr Zelenskyy and US President Donald Trump were expected to meet in Davos to finalize a landmark US-Ukraine agreement focused on Ukraine’s post-war recovery, with a projected value of $800 billion over ten years.

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