International rating agency Fitch Ratings has upgraded Ukraine’s long-term foreign currency credit rating from “RD” (limited default) to “CCC”. This decision was made after the government successfully normalized relations with the vast majority of commercial creditors. This was reported on the Fitch Ratings website.
The main impetus for the review of the rating was the completion of the restructuring of GDP warrants:
- Investor support: 99% of warrant holders agreed to the exchange. This significantly exceeds the required threshold of 75%.
- The essence of the deal: Ukraine is exchanging $2.6 billion in securities for new bonds (C-Notes) with a face value of $3.5 billion.
- Result: Together with the August restructuring of Eurobonds, Ukraine has now settled 94% of its external commercial debt.
Exiting the default state and moving to the “CCC” category signals to the market that the state has restored its debt management and has the support of international partners to fulfill financial obligations in the coming years.
