Fitch upgrades Ukraine's rating to 'CC'

Ratings agency Fitch on Wednesday raised Ukraine's rating to 'CC' from 'Limited Default' after the country restructured its external debt last week.

Ukraine's overseas creditors backed the country's request for a two-year freeze on about $20 billion of international bond payments, which would allow the country to avoid a complex debt default. With no sign of peace or a ceasefire on the horizon nearly six months after Russia's invasion began, holders of about 75% of the total outstanding have accepted Kiev's offer. Fitch does not usually assign outlooks to countries rated 'CCC+' or lower, the agency said. The rating agency had downgraded Ukraine's rating to limited default on Friday for considering the postponement of debt payments as the completion of a distressed debt swap.

What is Fitch Ratings?

Fitch Ratings publishes credit ratings, which are forward-looking views on the ability of an organization or obligation to meet its financial commitments. Issuer default ratings (IDRs) are assigned to companies, government entities, financial institutions such as banks, leasing companies and insurers, and public financial institutions (local and regional governments).  Issuer-level ratings are also assigned, usually include an expectation of improvement and can be above or below the issuer-level rating. Issue ratings are assigned to secured and unsecured debt securities, loans, preferred shares and other instruments, Structured finance ratings are issue ratings assigned to securities backed by receivables or other financial assets and take into account the relative vulnerability of the obligations to default. Credit ratings are indications of the likelihood of repayment in accordance with the terms of the issuance.

"CC" Implies a very high level of credit risk.