Since the Russian invasion of Ukraine, Ukraine's credit rating has plunged. Fitch has the rating of "C", which means that default is imminent with little prospect for recovery. Moody's gave Ukraine the credit rating of Caa3, which means the same thing as a C grade from Fitch.

S&P gives a slightly better credit rating for Ukraine at CCC+, which means substantial risk.

If Ukraine does successfully fend against the Russian invasion, I foresee its bonds surging higher in price. Many will see the high bond yields on Ukrainian government bonds and will capitalize on the opportunity since a victory would mean that the government will be able to better focus on economic recovery.

Assuming that Ukraine's fertile land is mostly kept intact despite the fighting, I can see the country relying more on grain exports to help pay down the debt. If not, then it will be more difficult for Ukraine to do business to help pay down the debt since it would take longer for non-agricultural industries to go back online after a complete shutdown due to war.

Is anyone investing in Ukrainian government bonds?