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and economic development.
8.4 International ratings
Fitch Ratings confirms Ukrainian Railways' insufficient creditworthiness. The rating agency confirmed UZ’s long-term CC credit rating, corresponding to Ukraine's current sovereign credit rating. The agency raised UZ's standalone credit profile CCC- to CC, the company says. The indicator's improvement became possible due to better results in the first half of the year. Fitch notes that the easing of liquidity pressures following the successful restructuring of external debt under Eurobonds at the end of last year has allowed the company to focus on continuing its operations in the current volatile and unpredictable environment, which includes rebuilding infrastructure damaged by the war. According to the head of the UZ, Yevhen Lyashchenko, the company will receive another €100M loan from the EIB for the modernization of railway infrastructure and the purchase of fixed assets to develop railway freight transportation. UZ has already invested in the development of railway infrastructure at crossings with EU countries. Earlier, UZ received €300M from the EBRD.
8.5 Fixed income
Ukraine will start selling military bonds abroad. According to the WSJ, Ukraine wants to sell military bonds to foreign individuals, mainly from Western Europe, as the government continues to seek ways to finance its military spending. According to analysts, the government's financing of the military's efforts directly depends on the ability to cover its budget deficits. It is reported that Ukraine's economy has somewhat stabilized this year. This has triggered a sharp rise in international bond prices since June. International bonds traded around $0.29 per $1 last week, according to MarketAxess. By the end of the year, Ukraine's economic activity will be about one-quarter lower than before
70 UKRAINE Country Report October 2023 www.intellinews.com