Ministry of Finance of Ukraine welcomes the upgrade of its sovereign rating by Fitch and Moody’s following its successful debt restructuring

The Ministry of Finance welcomes 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. 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 US$3bn and has postponed US$8.5bn in debt payments until after 2018.

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.

Minister of Finance Natalie Jaresko commented, “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.”

Original