KIEV, Dec. 9 - S&P Global Ratings has affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings.

"The outlooks on the long-term foreign and local currency ratings are stable. At the same time, we affirmed the 'uaBBB-' Ukraine national scale rating," the agency said.

"The affirmation reflects the broadly stabilizing macroeconomic picture within Ukraine in 2016. Positive growth has returned (after a significant contraction in 2015) and inflation has calmed. The government also implemented some key reforms that paved the way for the disbursement (albeit delayed) of $1 billion from the IMF in September 2016. At the same time, our 'B-' long-term rating captures the significant economic and political challenges that Ukraine still faces. These include the unpredictable security situation in the east of the country, sizable contingent liabilities, and questions relating to the health of the banking and financial sector," they stated.