Credit ratings agency Moody's affirmed Ukraine's 'Ca' rating on Friday, citing the long-lasting impact of the war with Russia on its economy and finances, as well as uncertainties over peace negotiations with Moscow.
"Growth prospects remain subdued as challenging security conditions, labour shortages and attacks on energy infrastructure continue," Moody's said, maintaining its outlook for Ukraine at stable.
The ratings agency on its website defines 'Ca' rating obligations as "highly speculative and are likely in, or very near, default, with some prospect of recovery in principal and interest".
Ukraine's economy cratered after Russia's full-scale invasion in 2022, falling close to 30%. Although it staged modest growth in 2023 and 2024, its gross domestic product (GDP) remains below the pre-war level as it extensively restructures its debt.
Moody's forecast Ukraine's GDP growth to slow to 2.5% in 2025 from 2.9% in 2024, adding that it expects economic growth to remain "subdued" in 2026 and 2027.
Rival ratings agency Fitch last week affirmed Ukraine's long-term foreign currency sovereign credit rating at "Restricted Default", as the nation continues to navigate diplomatic tensions and a significant erosion of its finances.
