Fitch upgrades Ukraine

Fitch Ratings said it upgraded Ukraine’s long-term foreign-currency issuer default rating to CCC from RD (restricted default) and affirmed the long-term local-currency issuer default rating at CCC.

The short-term foreign-currency issuer default rating also was upgraded to C from RD and the country ceiling was affirmed at CCC.

Fitch also affirmed the country’s senior unsecured local-currency debt ratings at CCC and assigned CCC ratings to the eurobonds issued Nov. 12.

The country has emerged from default on commercial external debt, issuing new bonds Nov. 12 to holders of its $15 billion in defaulted Eurobonds, the agency said.

The restructuring pushes out maturities to 2019 through 2027 and reduces the debt stock by $3 billion, which is 3.4% of GDP, Fitch said.

Public debt sustainability has improved, the agency said. Reduced refinancing needs and a pipeline of official financing give the public and external finances some breathing room and lower the risk of a sovereign debt crisis over the short- to medium-term, the agency said.

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