• Phone: +38 0 676 54 03 77

Fitch downgraded the rating of Ukraine in foreign currency.

Fitch downgraded the rating of Ukraine in foreign currency.

Posted in News.

International rating agency Fitch upgraded the rating of Ukraine in foreign currency to “CCC” after the restructuring of eurobonds.
International rating agency Fitch  raised the long-term issuer default ratings (IDR) of Ukraine in foreign currency from “RD” (restricted default) to “CCC”, according to a press release from the agency.
Short-term foreign currency IDR upgraded to “RD” to “C”.
Long-term IDR of Ukraine in the national currency, as well as the country ceiling is affirmed at ‘CCC’, as well as the ratings of senior unsecured debt in local currency.
The upgrade reflects, first of all, the output of Ukraine from defaulting on commercial foreign debt, issue new Eurobonds ended November 12 for the holders of securities of $ 15 billion, says Fitch. As a result of the restructuring of debt maturities were extended to 2019-2027 years, the amount of debt was reduced by $ 3 billion (3.4% of GDP).
Fitch has also assigned a rating of “CCC” Eurobonds Ukraine, issued on November 12, and withdrawn the ratings of those securities that have participated in the restructuring.
According to the forecast Fitch, Ukraine’s GDP will decline in 2015 to 11.6% after falling 6.8% in 2014. In October, the agency predicted a reduction of the Ukrainian economy by about 10% this year.
The following year, the Ukrainian economy is likely to return to growth, which will be about 1%, it is estimated Fitch, while the official forecast for 2016 – an increase of 2.4%. In 2017, the rise may increase up to 2-3%, says in Fitch.

WhatsApp chat