11:31 26.07.2016

Fitch affirms Ukraine's Long-Term Local Currency rating at 'CCC'

2 min read
Fitch affirms Ukraine's Long-Term Local Currency rating at 'CCC'

Fitch Ratings has affirmed Ukraine's Long-Term Local Currency (LTLC) IDR and Ukraine's Long-Term senior unsecured Local Currency bonds rating at 'CCC,' Fitch has said in a press release.

The Short-Term Foreign Currency (STFC) IDR has been affirmed at 'C' and a new Short-Term Local Currency (STLC) IDR of 'C' has been assigned.

The press service said that Fitch applied criteria changes to Ukraine's ratings.

"In line with the updated guidance contained in Fitch's revised Sovereign Rating Criteria dated 18 July 2016, Ukraine's credit profile does not support a notching up of the LTLC IDR above the LTFC IDR. This reflects Fitch's view that neither of the two key factors cited in the criteria that support upward notching of the LTLC IDR are present for Ukraine. Those two key factors are: (i) strong public finance fundamentals relative to external finance fundamentals; and (ii) previous preferential treatment of LC creditors relative to FC creditors," the press service said.

In line with the updated guidance contained in Fitch's revised Sovereign Rating Criteria dated 18 July 2016, Ukraine's STFC IDR is derived from the mapping to its LTFC IDR of 'CCC'.

The assignment of the STLC IDR is consistent with Fitch's approach to assigning ST ratings by using its Long-Term/Short-Term Rating Correspondence table to map the STLC IDR from the LTLC rating scale.

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