Fitch Ratings has upgraded Ukraine's Long-term foreign currency Issuer Default Rating (IDR) to 'CCC' from 'RD' (Restricted Default) and affirmed the Long-term local currency IDR at 'CCC', Fitch said in a press release.
The Short-term foreign-currency IDR is upgraded to ‘C’ from ‘RD’. The Country Ceiling is affirmed at ‘CCC’. Senior unsecured local-currency debt ratings are affirmed at ‘CCC’.
Fitch has assigned ‘CCC’ ratings to the eurobonds issued on Nov. 12 and withdrawn ratings on those securities tendered in the debt exchange.
The country has emerged from default on commercial external debt, issuing new bonds on 12 November to holders of $15 billion in defaulted eurobonds. The restructuring pushes out maturities to 2019-2027 and reduces the debt stock by $3 billion (3.4 percent of GDP).
“Although real output has stabilised, with a 0.7 percent quarter-over-quarter seasonally adjusted rise in real GDP in 3Q, the economy will still contract on an annual basis by 11.6 percent in 2015, led by a 20 percent fall in consumption. Fitch believes a swift recovery is unlikely, projecting growth of 1 percent in 2016, compared with the government assumption of 2.4 percent. In 2017, we project growth could reach 2-3 percent,” Fitch said.
