Page 58 - UKRRptJul19

8.3 Stock market
8.3.1 Equity market dynamics
Ukraine steel pellet maker Ferrexpo will pay record high $135mn ($0.231/sh) dividends for 2018, the company reported following the AGM. In addition, shareholders approved the company’s right to purchase treasury shares. However, while the 7% dividend yield is high for Ferrexpo, it is still materially below Russian steelmakers’ double-digits. However, the stock’s main driver is iron ore prices and a potential buy back would be no more than a supportive event for the stock.
8.4 International ratings
Ukraine - Rating agency
as of June 1, 2018
last change
Moodys (USD rating)
Caa1 (S)
21/12/18
Fitch (USD rating)
B- (S)
22/7/16
S&P
B- (S)
25/9/15
Ukraine’s credit ratings have been improving but the country is still rated junk by the three main agencies.
Moody’s rates Ukraine at Caa1 with stable outlook on its foreign currency debt. The local debt is also rated at Caa1.
Moody’s last upgraded Ukraine from Caa2 (Positive) in August 2017 as the country emerged from an economic meltdown that year. The lowest rating the country had was Ca (Negative) in March 2015 in the wake of the Euromaidan protests that ousted president Viktor Yanukovych. The highest the country has scored was B1 (positive) in August 2008 as the entire region boomed before the global financial crisis struck that autumn.
Fitch rates Ukraine at B- on its foreign currency debt with no outlook indicated. The local debt is also rated at B- (none).
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.
58 UKRAINE Country Report July 2019 www.intellinews.com