Fitch Ratings no longer sees a threat of Ukrainian default.

The international agency Fitch Ratings has raised Ukraine’s long-term rating in foreign currency from RD (limited default) to CC (very high credit risk). The increase in the rating corresponds with creditor consent to restructure Ukraine’s external debt. According to the rating agency, postponing payments on Eurobonds eased the foreign debt service pressure in the context of weakening international reserves and the urgent need to fund war-related expenses. 75% of bondholders agreed to the restructuring, which exceeds the required minimum of 66.7%. However, the CC rating reflects unresolved debt sustainability risks, as well as the highly strained state of public and external finances and Ukraine’s macro-financial situation.