This week Fitch and Moody's rating agencies have upgraded Ukraine's long term sovereign rating from ‘Restricted Default’ to ‘CCC’, and from Ca to Caa3 respectively.
The Finance Ministry of Ukraine noted that these upgrades were direct and positive effects of Ukraine’s sovereign debt restructuring which was successfully concluded, alongside the issuance of new bonds, on November 12.
Due to successful debt restructuring, Ukraine has achieved an immediate debt relief of US$3bn and has postponed US$8.5bn in debt payments until after 2018.
Following S&P's recent rating upgrade, the decisions of Moody’s and Fitch represents a significant step towards Ukraine’s return to international capital markets in the medium term, as envisioned under the IMF-supported Extended Fund Facility (EFF) program. These upgrades will also facilitate international financing of Ukrainian companies and banks, which will benefit their international and domestic operations.