Finance
S&P lifts Ukraine's rating following GDP warrant restructuring
Published by Global Banking and Finance Review
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Quick Summary
S&P upgraded Ukraine's rating to 'CCC+' after a $2.6 billion GDP warrant exchange, indicating economic resilience amid ongoing conflict.
S&P Upgrades Ukraine's Sovereign Rating After Debt Restructuring
Impact of S&P Rating Upgrade on Ukraine
Jan 22 (Reuters) - Global ratings agency S&P upgraded Ukraine's sovereign rating to 'CCC+' from 'SD' on Thursday after the country completed a $2.6 billion exchange of its GDP warrants for new securities.
"The ongoing restructuring of a small portion of debt still in default will not significantly impact Ukraine's ability and willingness to honor its other debt obligations," the agency said.
The rating upgrade follows peer Fitch, which also upgraded the war-ravaged country after the debt restructuring deal.
Details of the Debt Restructuring
Concluding the transaction that received more than 99% support from debtholders was a relief for Kyiv, marking a key step to emerging from a debt default sparked by Russia's 2022 full-scale invasion.
President Volodymyr Zelenskiy said earlier in the day after talks with U.S. President Donald Trump in Davos that the terms of security guarantees for Ukraine had been finalised, but the vital issue of territory in its war with Russia remains unsolved.
International Support and Military Outlook
While international support for Ukraine remains strong, the agency assumes high-intensity military activity will continue through 2026.
S&P maintained Ukraine's outlook at 'stable', citing the nation's manageable government debt service requirements and steady international financial support.
(Reporting by Sri Hari N S in Bengaluru)
Key Takeaways
- •S&P upgraded Ukraine's sovereign rating to 'CCC+'.
- •Ukraine completed a $2.6 billion GDP warrant exchange.
- •Debt restructuring received over 99% support from debtholders.
- •International support for Ukraine remains strong.
- •High-intensity military activity expected through 2026.
Frequently Asked Questions about S&P lifts Ukraine's rating following GDP warrant restructuring
1What is a sovereign rating?
A sovereign rating is an assessment of a country's creditworthiness, indicating the likelihood that it will default on its debt obligations.
2What is debt restructuring?
Debt restructuring involves altering the terms of an existing debt agreement to provide relief to the borrower, often including changes to payment schedules or interest rates.
3What are GDP warrants?
GDP warrants are financial instruments that allow investors to receive payments based on the growth of a country's gross domestic product.
