Ukraine’s Outlook Raised by S&P to "Stable" after Russia bails it out and provides economic aid

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[QUOTE]Ukraine had its credit-rating outlook upgraded to stable from negative by Standard & Poor’s after Russia said this month that it would provide $15 billion of aid and cheaper natural gas.

S&P reaffirmed Ukraine’s long-term sovereign rating at B-, six steps below investment grade, and said it no longer predicts a depreciation of the hryvnia, according to an e-mailed statement today. The ratings service said it might still downgrade the country in the next 12 months if Russia’s support comes into doubt or political turmoil worsens.

“Ukrainian external and fiscal funding challenges have been significantly reduced by the announcement of a financial support package from Russia,” Trevor Cullinan and Ana Jelenkovic, credit analysts for S&P, said in the report.

Russian President Vladimir Putin agreed to buy $15 billion in Eurobonds and cut the price it charges for gas by 30 percent after Ukraine decided to postpone an association agreement with the European Union. Ukraine, which had its rating cut to Greece’s level at S&P last month, needed the bailout after its economy entered a third recession since 2008 and foreign currency reserves fell to seven-year low.

Yields on Ukrainian debt tumbled after the Dec. 17 bailout deal with Russia. The government is paying a 5 percent yield on the $3 billion in two-year Eurobonds bought by Russia. The yield on Ukraine’s dollar-denominated Eurobonds due in June 2016 has tumbled 240 basis points, or 2.4 percentage points, to 9.17 percent since the day before the agreement, according to data compiled by Bloomberg.
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[url]http://www.bloomberg.com/news/2013-12-26/ukraine-s-outlook-raised-by-s-p-to-stable-on-russian-aid.html[/url]

[Spor]

What is he up to now?