13:10 21.11.2015

Fitch, Moody's step to upgrade Ukraine's sovereign rating to facilitate intl financing of Ukraine companies, banks - -finance ministry

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Fitch, Moody's step to upgrade Ukraine's sovereign rating to facilitate intl financing of Ukraine companies, banks - -finance ministry

The Finance Ministry of Ukraine the decision of Fitch and Moody's rating agencies to upgrade Ukraine's long term sovereign rating from ‘Restricted Default’ to ‘CCC’, and from Ca to Caa3 respectively.

"Following S&P's recent rating upgrade, the decisions of Moody’s and Fitch represents a significant step towards Ukraine’s return to international capital markets in the medium term, as envisioned under the IMF-supported Extended Fund Facility (EFF) program. All three major rating agencies have now upgraded Ukraine's sovereign rating. These upgrades will also facilitate international financing of Ukrainian companies and banks, which will benefit their international and domestic operations," the ministry said on November 20.

According to the ministry, these upgrades are direct and positive effects of Ukraine’s sovereign debt restructuring which was successfully concluded, alongside the issuance of new bonds, on November 12. As a result, Ukraine has achieved an immediate debt relief of $3 billion and has postponed $8.5 billion in debt payments until after 2018.

"This is further positive news that validates our efforts at creating the economic breathing room our country needs for a return to growth in 2016. Our successful debt restructuring, increased public debt sustainability, stabilized currency, and the fundamental reforms of our banking and energy sectors are highlighted as key reasons for Fitch’s positive view of Ukraine’s long-term sovereign rating. These announcements validate progress in our reform efforts to date and reinforces our determination to continue on this path," Finance Minister of Ukraine Natalie Jaresko said.

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