International credit rating agency Fitch Ratings announced that it has upgraded Ukraine’s long-term foreign currency issuer default rating from “Restricted Default” to “CCC.” The decision reflects the country’s progress in restructuring its debt obligations and stabilizing relations with the majority of its external commercial creditors.
In its statement, Fitch noted that it typically does not assign an outlook to sovereign ratings at “CCC+” or below. However, the upgrade signals a normalization of Ukraine’s engagement with foreign creditors following restructuring efforts.
Fitch also highlighted the European Union’s decision on December 19 to provide €90 billion in financial assistance to Ukraine. According to the agency, this support is expected to cover Ukraine’s financing needs for more than a year, significantly reducing short-term debt sustainability risks.
Despite the improvement, Fitch emphasized that Ukraine’s credit rating remains well below investment-grade levels, underscoring ongoing economic and financial challenges facing the country.
Source: Newstimehub
