Fitch upgrades Ukraine's foreign currency IDR to 'CCC' after bond restructuring

The Short-term foreign-currency IDR is upgraded to 'C' from 'RD'. The Country Ceiling is affirmed at 'CCC'. Senior unsecured local-currency debt ratings are affirmed at 'CCC'. Fitch has assigned 'CCC' ratings to the eurobonds issued on 12 November and withdrawn ratings on those securities tendered in the debt exchange. The country has emerged from default on commercial external debt, issuing new bonds on 12 November to holders of $15 billion in defaulted eurobonds. The restructuring pushes out maturities to 2019-2027 and reduces the debt stock by $3 billion (3.4% of GDP). "Although real output has stabilised, with a 0.7% quarter-over-quarter seasonally adjusted rise in real GDP in 3Q, the economy will still contract on an annual basis by 11.6% in 2015, led by a 20% fall in consumption. Fitch believes a swift recovery is unlikely, projecting growth of 1% in 2016, compared with the government assumption of 2.4%. In 2017, we project growth could reach 2%-3%," Fitch said.