Fitch affirms Ukraine's Naftogaz at 'CC' over high default risk
Fitch Ratings has affirmed the credit rating of Ukraine’s state-owned energy giant Naftogaz at 'CC,' indicating a high probability of default, the global credit rating agency announced on August 12.
Fitch Ratings has maintained Ukraine's energy company Naftogaz's credit rating at CC, indicating a high risk of default, following a bond restructuring. The rating reflects concerns about Naftogaz's ability to meet debt obligations due to weak liquidity, high operational risks in Ukraine, and limited funding options. The agency affirmed Naftogaz's U.S. dollar and euro bond ratings at C, signaling a near-default situation.
Despite Russian attacks causing significant damage to Ukrainian oil and gas infrastructure, Naftogaz has secured international funding to manage the surge in natural gas imports. Fitch views the Eurobond extension positively, noting Naftogaz's strong government backing and status as Ukraine's largest extractive firm. The rating agency also highlighted other Ukrainian firms facing financial distress, including mining giant Ferrexpo and oil and gas company DTEK.
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