The international rating agency Fitch Ratings has affirmed the long-term sovereign ratings of the issuer's default (IDR) in foreign and local currency at 'B-' with stable outlook. This is stated in a press release published on the agency's website.
In addition, short-term foreign and local currency IDRs are affirmed at "B", "country ceiling" (the risk of restricting the transfer of foreign currency abroad and convertibility of currency by the government of the rated country) is confirmed at "B-"
The rating of long-term issues of Ukraine's priority unsecured bonds is affirmed at "B-", short-term priority unsecured bonds in national currency at "B".
"Despite significant progress in macro-stabilization, energy, pensions and the fight against corruption, political risks for the reform agenda are linked to fragmented political forces, the growth of populist votes and a slow recovery from a deep crisis. Presidential and parliamentary elections are scheduled for 2019, which will increase political cost of reforms," the press release said.
We recall, on April 10, Fitch updated the default rating of Naftogaz to "B-".