Fitch upgrades long-term rating of Kyiv to ‘CCC’

Moscow. December 24. Rating Agency Fitch upgraded long-term credit rating of Issuer default (IDR) of Kiev in foreign currency to “CCC” to “D” according to a press release from the Agency.

According to the report, the increase in long-term credit rating of Kiev is connected with the completion of the restructuring of Eurobonds of Kiev for 550 million dollars, and also with satisfactory results of budget execution.

Fitch also raised the rating of Kiev in the local currency to “CCC” with a “D” after the restructuring of its bonds in the domestic market that does not involve writing off principal, or reducing the coupon to Kiev extended the maturities of their municipal bonds for 12 months with initial maturity the first of October and the seventh December 2015.

Fitch expects budgetary performance of the city will remain volatile due to the General weakness of the sovereign government securities, and also reduce the predictability of fiscal policy that exacerbates the negative macroeconomic trends.

Fitch expects the decline of Ukraine’s economy in 2015 is 11.6%, which also adversely affects the budgetary provision of the city. And any adverse changes that affect the willingness and ability to refinance or repay its domestic bonds will lead to the downgrade of Kiev.

As reported, on December 22, 2015 the deputies of the Kyiv city Council has completed the translation process in public debt the external debt of Kiev Eurobonds in 2005 to $117 million 393,822 thousand and Eurobonds of 2011 to $233 million thousand 671,875

For the ratification of the relevant decision voted 105 deputies at the meeting on Tuesday.