Fitch downgrades 12 Ukraine companies

Fitch Ratings said it downgraded the ratings of 12 Ukrainian companies following the agency's downgrade of the Ukrainian sovereign's ratings.

The agency downgraded Ukraine's long term foreign-currency issuer default rating to CCC from B- and its short-term foreign-currency issuer default rating to CCC from B-. Fitch affirmed its local-currency issuer default rating at B- with a negative outlook.

Ukraine's country ceiling was downgraded to CCC from B-.

The downgrades on the companies in the country reflect the increased uncertainty regarding the political and economic situation in the Ukraine, which may ultimately threaten the companies' ability to meet both their foreign- and local-currency obligations.

In line with the agency's criteria for companies with ratings above the country ceiling rating, the long-term foreign-currency issuer default ratings of the companies mentioned here were downgraded to CCC in line with the Ukrainian country ceiling, the agency said.

Due to the imposition of limited capital controls and the recent depreciation of the hryvna, Fitch said it sees the immediate threat to companies' foreign-currency borrowings as higher than the threat to local-currency debt.

However, likelihood of default on local-currency obligations also has increased, the agency said. This reflects the higher level of political and economic uncertainty, plus cross-default provisions between local- and foreign-currency debt.

The downgrades include Avangardco Investments Public Ltd.'s long-term foreign-currency issuer default rating to CCC from B- , long-term local-currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with recovery Rating of RR4.

DTEK Holdings BV's long-term foreign-currency issuer default rating was downgraded to CCC from B-, short-term foreign-currency issuer default rating to C from B, long-term local currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with a recovery rating of RR4.

DTEK Finance BV's senior unsecured notes and DTEK Finance plc's senior unsecured guaranteed notes were downgraded to CCC from B- with recovery rating of RR4.

Ferrexpo plc's long-term foreign-currency issuer default rating was downgraded to CCC from B-, short-term foreign-currency issuer default rating to C from B and foreign-currency senior unsecured rating to CCC from B- with recovery rating of RR4.

Ferrexpo Finance plc's senior unsecured rating on its guaranteed notes was downgraded to CCC from B- with a recovery rating of RR4.

Fintest Trading Co. Ltd.'s long-term foreign-currency issuer default rating was downgraded to CCC from B- and long-term local-currency issuer default rating to B- from B.

Kernel Holding SA's long-term foreign-currency issuer default rating was downgraded to CCC from B- and long-term local-currency issuer default rating to B- from B.

Lemtrans LLC's long-term foreign-currency issuer default rating was downgraded to CCC from B-, long-term local-currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with recovery rating of RR4.

Metinvest BV's long-term foreign-currency issuer default rating was downgraded to CCC from B-, short-term foreign-currency issuer default rating to C from B, long-term local-currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with a recovery rating of RR4.

MHP SA's long-term foreign-currency issuer default rating was downgraded to CCC from B-, long-term local-currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with a recovery rating of RR4.

OJSC Myronivsky Hliboproduct's long-term foreign-currency issuer default rating was downgraded to CCC from B- and long-term local-currency issuer default rating to B- from B.

Mriya Agro Holding Public Ltd.'s long-term foreign-currency issuer default rating was downgraded to CCC from B-, short-term foreign-currency issuer default rating to C from B, long-term local-currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with recovery rating of RR4.

NJSC Naftogaz of Ukraine (Naftogaz)'s long-term foreign-currency issuer default rating was affirmed at CCC, along with its long-term local-currency issuer default rating at CCC. Its senior unsecured foreign-currency rating on its $1.6 billion bond guaranteed by Ukraine was downgraded to CCC from B- with a recovery rating of RR4.

OJSC Creative Group Public Ltd.'s long-term foreign-currency issuer default rating also was downgraded to CCC from B- and its long-term local-currency issuer default rating was affirmed at B-.

Ukrlandfarming plc's long-term foreign-currency issuer default rating was downgraded to CCC from B-, long-term local-currency issuer default rating to B- from B and foreign-currency senior unsecured rating to CCC from B- with recovery rating of RR4.

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