Fitch raised the rating of Ukraine in foreign currency

Moscow. November 19. International rating Agency Fitch on the night of Wednesday upgraded long-term Issuer default ratings (IDR) of Ukraine in foreign currency from the level “RD” (restricted default) to CCC, according to a press release of the Agency.

Short-term foreign currency IDR upgraded from “RD” to “C”.

Long-term Issuer default rating of Ukraine in national currency, as well as the ceiling of the country rating has been affirmed at ‘ CCC ‘ and the senior unsecured ratings of obligations in national currency.

The rating increase reflects, primarily, the withdrawal of Ukraine from defaulting on a commercial external liabilities, culminated in the issue of new Eurobonds on November 12 for holders of securities at $15 billion, said Fitch. As a result of restructuring the debt maturities were rescheduled for 2019-2027 years, reduced the debt by $3 billion (3.4% of GDP).

Fitch has also assigned ratings to ‘ CCC ‘ Eurobonds Ukraine, released on 12 November and withdrew the ratings of those securities that participated in the restructuring.

Analysts believe the rapid recovery of the Ukrainian economy is unlikely.

According to Fitch forecast, GDP of Ukraine will decline in 2015 by 11.6% after falling 6.8% in 2014. In October, the Agency predicted the reduction of the Ukrainian economy by about 10% this year.

Next year Ukraine’s economy will probably return to growth, which will be about 1% according to Fitch, while the official forecast for 2016 – an increase of 2.4%. In 2017 may increase up to 2-3%, I believe in Fitch.