Fitch affirms Ukraine at 'B-'; Outlook Stable
Fitch Ratings has affirmed Ukraine's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B-' with a Stable Outlook, Fitch said in a press release published on October 27.
In addition, issue ratings on long-term senior-unsecured foreign-currency bonds affirmed at 'B-'; issue ratings on long-term senior-unsecured local-currency bonds affirmed at 'B-' and issue ratings on short-term senior-unsecured local-currency bonds affirmed at 'B'. Country Ceiling affirmed at 'B-'; Short-Term Foreign-Currency IDR and Short-Term Local-Currency IDR affirmed at 'B'.
As in the previous rating report published in May 2017, Ukraine's ratings reflect weak external liquidity, a high public debt burden and structural weaknesses, in terms of a weak banking sector, institutional constraints and geopolitical and political risks.
Fitch's proprietary SRM assigns Ukraine a score equivalent to a rating of 'CCC' on the Long-Term FC IDR scale.
Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final LT FC IDR by applying its QO, relative to rated peers, as follows: Macro: +1 notch, to reflect Ukraine's strengthened monetary and exchange rate policy which will support improved macroeconomic performance and domestic confidence. Increased exchange rate flexibility allows the economy to absorb shocks without depleting reserves, Fitch said.