Fitch downgraded Naftogaz’s credit rating outlook.

According to Fitch, the revised Naftogaz’s rating has changed from positive to stable. At the same time, the agency left Naftogaz’s credit rating unchanged at level B, which reflects the risk of default on the issuer of securities in the long run. Given that Naftogaz is a national company, its credit rating is linked to Ukraine’s overall stability.0 The ‘B-‘ of Naftogaz reflects volatility in its operations, following a significant increase of gas prices, its ability to cover domestic consumption needs and to collect receivables in a weaker domestic economy, and foreign exchange (FX) exposure.