Fitch has raised the rating of state electricity transmission company Ukrenergo.

The international rating agency Fitch Ratings raised the priority unsecured rating of Ukrenergo’s state-guaranteed bonds totaling $825M from C to CC after the company restructured. According to the announcement, the bond return rating remains unchanged – at the level of RR4. The rating increase took place against the background of the Ukraine’s debt restructuring. Fitch also assigned Ukrenergo a long-term issuer default rating of CC. The agency specified that the ratings reflect the strong ties of Ukrenergo with the state. Fitch noted that the restructuring had improved Ukrenergo’s liquidity, but it remained unsatisfactory, given the remaining debt service and stressed operating cash flows. Fitch considers the lack of liquidity a restraining factor for the Ukrenergo’s ratings and its independent CC level creditworthiness.