Page 41 - UKRRptAug21

Fitch has become more cautious on Ukraine having removed its positive outlook call in December 2018. But the ratings have general recovered from Fitch “restricted default” rating in October 2015, following the Maidan events. The highest rating the country has had from Fitch was a BB- (positive) first awarded in May 2005 and again in October 2006, during a year-long investment frenzy when foreign banks bought up banks in the country believing the country was about to take off.
Standard & Poor’s (S&P) rates both Ukraine’s foreign and local debt at B-
with stable outlook.
S&P last upgraded Ukraine’s rating from Caa2 (positive) in August 2017. The rating nadir was Ca (negative) awarded in March 2015 following the Maidan events. Its zenith was B1 (positive) awarded in August 2008 at the apex of the region-wide boom.
8.5 Fixed income
8.5.1 Fixed income - bond news
Ukraine’s national rail company Ukrzaliznytsia (Ukrainian Railways) has placed five-year eurobonds for $300mn at 7.875% per annum, a source in banking circles has told Interfax-Ukraine. The issuer is the company’s holding Rail Capital Markets plc. Ukrzaliznytsia will use the raised funds to service the company’s debt obligations and repay the loan to Russia’s Sber (formerly known as Sberbank). Part of the funds is to be used to replenish the working capital of Ukrzaliznytsia. The company has been struggling to reform itself and trying to deal with the thorny problem of cutting its massive staff. Ukrzaliznytsia is one of the biggest employers in the country, but as part of its attempts to put itself on a profitable basis advisors say it needs to cut staff – a politically
41 UKRAINE Country Report August 2021 www.intellinews.com