Fitch Ratings has upgraded National Joint-Stock Company Naftogaz Ukrainy's (Naftogaz) Long-Term Issuer Default Rating (IDR) to 'CC' from 'RD' (Restricted Default) following the completion of its eurobond restructuring, the company said on its website.

"Fitch has affirmed the company's senior unsecured notes issued by Kondor Finance plc at 'C'; the Recovery Rating has been revised to 'RR6' from 'RR5'. We have revised Naftogaz's Standalone Credit Profile (SCP) up to 'cc' from 'rd'," it said.

"Naftogaz's 'CC' IDR reflects our view that even after the restructuring, the company's credit risk remains very high and a default of some kind appears probable. Naftogaz's amended eurobond payment schedule assumes main principal payments starting from July 2024, and the company's projected liquidity remains extremely weak and unpredictable, given very high operational risks in Ukraine amid the ongoing war with Russia, slow payments for gas and limited external funding options," the report says.

“Experts positively assessed the work of the Naftogaz team in increasing production and ensuring stable operation of the infrastructure, as well as improved operating financial indicators. This will allow us to raise funds on international markets,” commented the head of the board of Naftogaz, Oleksiy Chernyshov, on Facebook.

As reported, on December 9, Fitch Ratings confirmed Ukraine's long-term foreign currency issuer default rating (IDR) at "CC".