The rating will remain at the RD level as Ukraine continues to repair its external commercial debt, the agency said.
Rating agency Fitch Ratings has confirmed Ukraine’s long-term foreign currency rating at limited default (RD). The agency reported this the previous day.
It is indicated that Ukraine continues to adjust its external commercial debt.
“The suspension of debt service is expected to continue until the debt restructuring process is completed. Ukrenergo has not paid deferred interest on November 9, 2024. Ukraine’s long-term rating will remain at RD until further notice by Fitch that exchanges have been completed and relations with a large majority of external commercial creditors have normalized,” the report said.
At the same time, the ratings of Ukraine in the national currency are maintained at the level of CCC+. A significant part of the national debt belongs to the NBU and Ukrainian banks.
“In our view, such an ownership structure will limit the benefits for Ukraine from any debt restructuring of the loans, as it will create potential financial costs and may also create risks for to the stability of the financial sector and harm the development of the domestic debt market,” said Fitch.
The agency expects the general government budget deficit to remain high in 2025, at 19.1% and 19.2%, respectively.
Fitch estimates that despite the recent passage of tax increases, high levels of defense spending and declining foreign grants will keep the deficit large.
Let’s recall that in July Ukraine agreed with private creditors to postpone external debt payments. And in September, Ukraine announced the completion of its debt restructuring operation.
In total, the debt was reduced by $9 billion. This represents a 37% nominal reduction in the amount of the loan from the first day of the transaction and a 60% reduction in the net amount of the loan.
The restructuring led to international agencies downgrading Ukraine’s ratings to the level of limited default.
New Correspondent.net on Telegram and WhatsApp. Subscribe to our channels Athletistic and WhatsApp
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.