Fitch Ratings has upgraded National Joint Stock Company Naftogaz's (Naftogaz) Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B-'. The Outlook is Positive.

The upgrade follows that of Ukraine's sovereign rating (B/Positive) on September 6, 2019, Fitch said on Friday.

The rating also takes into account Naftogaz's weak liquidity profile but overall low leverage and also some uncertainty related to domestic gas prices, the unbundling of the international transit business and political risk.

Naftogaz Ukrainy unites the largest oil and gas producing enterprises in the country. The holding is a monopolist for transit and storage of natural gas in underground storage facilities, as well as for oil transportation through the country.