10 September 2021, Friday, 18:22 141

Fitch Assigns 'B(EXP)' Rating To Kyiv's Upcoming Domestic Bond Issue

Редактор: Daria Zubkova

Fitch Ratings, an international credit rating agency, has assigned an expected Long-Term Rating of “B(EXP)” to the city of Kyiv's upcoming domestic bond issue.

The rating agency announced this in a statement, the Ukrainian News Agency reports.

According to the statement, the final rating is contingent upon the receipt of final documents conforming to information already received.

“Kyiv plans to issue domestic bonds for up to UAH 1.1 billion in one tranche of UAH 300 million and two tranches of UAH 400 million, to be redeemed bullet at the tranches' final maturities, which fall between 2024-2026,” the statement said.

According to the statement, interest will be paid quarterly.

The bonds' proceeds will be used to finance infrastructure investments.

"Kyiv's bond issue rating is equalized with the city's Long-Term Issuer Default Rating since the bonds will be a senior, unsecured obligation and rank pari passu with the city's other senior unsecured obligations,” the rating agency said.

According to Fitch’s rating definitions, “B” ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

As Ukrainian News Agency earlier reported, Fitch Ratings revised the Outlook on Ukraine's long-term foreign-currency Issuer Default Rating (IDR) from Stable to Positive and affirmed the IDR at “B” in early August.

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