Fitch upgrades rating on Ukraine to ‘CC’

Ratings agency Fitch on Wednesday upgraded Ukraine’s rating to ‘CC’ from ‘Restricted Default’ following the country’s restructuring of external debt last week.

Ukraine’s overseas creditors backed the country’s request for a two-year freeze on payments on almost $20 billion in international bonds, which will allow it to avoid a messy debt default. With no sign of peace or a ceasefire on the horizon nearly six months after Russia’s invasion began, holders of around 75% of the outstanding total agreed to Kyiv’s proposal.

Fitch typically does not assign outlooks for sovereigns with a rating of ‘CCC+’, or below, the agency said. The ratings agency had cut Ukraine’s rating to restricted default on Friday as it deemed the deferral of debt payments as a completion of a distressed debt-exchange.

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