Fitch Ratings has upgraded Ukraine’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to ‘B-‘ from ‘CCC’. The Outlook is Stable. The issue ratings on Ukraine’s long-term senior unsecured foreign- and local-currency bonds are also upgraded to ‘B-‘ from ‘CCC’, and the sovereign’s short-term senior unsecured foreign- and local-currency bonds are upgraded to ‘B’ from ‘C’.
The Country Ceiling has been upgraded to ‘B-‘ from ‘CCC’ and the Short-Term Foreign- and Local-Currency IDRs to ‘B’ from ‘C’.
Fitch Ratings has upgraded Kharkiv’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) in foreign and national currency from ‘CCC’ to ‘B-‘ and Short-Term Foreign Currency IDR from ‘C’ to ‘B’ with the stable Outlook on November 18.
According to Fitch, the upgrade of the city of Kharkiv’s IDRs and revision of the Outlook on the National Long-Term rating reflect the following key rating drivers and their relative weights: The city’s ratings remain constrained by Ukraine’s ratings (B-/B) and a weak institutional framework governing Ukrainian local and regional governments. The framework is characterized by political tensions and challenging reform agenda implied by Ukraine’s IMF program to secure additional external funding. This has resulted in frequent changes in the allocation of revenue sources and the assignment of expenditure responsibilities, which limits forecasting ability and hinders the strategic planning of local and regional governments in Ukraine.