Fitch affirms Naftogaz credit rating at 'CC'
International rating agency Fitch has affirmed the long-term issuer default rating (IDR) of NJSC Naftogaz of Ukraine at ‘CC’ following the restructuring of the company’s $0.6 billion and EUR0.7 billion Eurobonds issued through Kondor Finance.
"Naftogaz’s ‘CC’ IDR reflects uncertainty about its ability to service debt on time, given forecast weak liquidity, very high operating risks in Ukraine, including ongoing attacks on its infrastructure amid the war with Russia, and limited access to external financing," the agency said in a statement on Wednesday.
Fitch added that it also affirmed Naftogaz’s U.S. dollar- and euro-denominated bonds at ‘C’ with a Recovery Rating of ‘RR6.’
As part of its standard rating procedure, Fitch first downgraded Naftogaz from ‘CC’ to ‘RD’ before immediately restoring it to ‘CC.’
Separately, the agency noted intensifying Russian strikes on Ukraine’s oil and gas infrastructure, saying significant asset damage had forced Naftogaz to substantially increase natural gas imports in 2025-2026. The company is funding these imports using its own resources, grant support from international partners, and credit financing, including from the EBRD and EIB.
At the same time, Fitch views the extension of Eurobond maturities as a positive factor for the company’s credit profile. Despite the shelling, state-owned Naftogaz remains Ukraine’s largest oil and gas producer and continues to have government support, which also helped preserve the rating.
Among other rated Ukrainian peers, the agency cited Ferrexpo plc (‘CC’), whose rating reflects significant uncertainty about the group’s business continuity due to bankruptcy proceedings initiated against its main operating subsidiary in Ukraine, and DTEK Oil & Gas Production B.V. (‘CC’), reflecting uncertainty about its ability to service future bond obligations given the National Bank of Ukraine’s (NBU) moratorium on cross-border foreign-currency payments, high operating risks and weak liquidity.
Fitch also cited ratings for Metinvest B.V. (‘CCC-’), reflecting a reduced liquidity buffer following redemption of its 2026 bonds and still-high refinancing risk ahead of bond maturity in October 2027, and DTEK Energy B.V. (‘CCC-’), reflecting uncertainty over its ability to service future bond principal amortization given the NBU moratorium, as well as liquidity and refinancing risk given its December 2027 maturity.