Fitch upgrades Ukraine to CC

Fitch Ratings said it upgraded Ukraine's long-term foreign-currency issuer default rating to CC from RD, Restricted Default. The agency typically does not assign outlooks for sovereigns with a rating of CCC+, or below.

The upgrade follows the execution of consent solicitation on Aug. 11 to restructure external debt, which the agency said it considers the completion of a distressed debt exchange, curing the restricted default.

“Near $6 billion of principal and interest on Ukraine's Eurobonds has been deferred by 24 months, alleviating external debt servicing pressure, in the context of weakening international reserves and acute war-related spending needs. The restructuring received the consent of 75% of bondholders (by aggregate principal amount), above the 66.7% minimum required,” Fitch said in a press release.

Given the ongoing war between Ukraine and Russia, Fitch said it considers a broader restructuring possible.

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