Fitch cuts Naftogaz

Fitch Ratings said it downgraded OJSC Naftogaz's long-term foreign- and local-currency issuer default ratings to "restricted default" from C. Both ratings have been placed on Rating Watch evolving. Fitch also said it affirmed the senior unsecured rating on Naftogaz's $500 million eurobond at C. The recovery rating is RR4.

The downgrade follows confirmation from Naftogaz that repayment of its $500 million eurobond, which matured Sept. 30, has not occurred and that a standstill period to enable restructuring of the bond has begun, Fitch said.

Naftogaz has submitted a restructuring proposal to bondholders for the eurobond, the agency said.

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