Fitch prunes VF Ukraine

Fitch Ratings said it downgraded VF Ukraine's long-term foreign-currency issuer default and senior unsecured debt ratings to CCC- from CCC. The recovery rating remains at RR4. The debt was issued by VFU's subsidiary VFU Funding plc.

“The downgrade reflects our expectation that VFU will not have sufficient liquidity available for its U.S. dollar-denominated debt service in the next 12 months, coupled with significant refinancing risks in a challenging operating environment. We expect National Bank of Ukraine (NBU) to continue restricting private companies' cross-border foreign-currency payments to meet their foreign debt obligations. We also anticipate insufficient liquidity in foreign accounts to cover upcoming coupon payments,” Fitch said in a press release.

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