The international rating agency Fitch Ratings has confirmed the long-term issuer default rating of Ukraine in foreign currency at the CC level.
This is stated in the notification of the department, the Ukrainian News agency reports.
The confirmation of Ukraine's long-term issuer default rating in foreign currency at the level of CC reflects Fitch's opinion about the likely further restructuring of commercial debt in foreign currency, taking into account the scale of economic damage from the war with Russia and the significant financial loss associated with it.
Fitch believes that burden-sharing with commercial creditors is a likely condition for major financial assistance by international official creditors.
In addition, Fitch forecasts Ukraine's GDP to grow by 2% in 2023, as the ongoing war prevents the return of significant numbers of refugees or large-scale investment, and power outages following Russian shelling create an additional deterrent.
The agency reminds of the decrease in GDP in 2022 by approximately 31% and a net outflow of the population of eight million people according to the UN data, while pointing to their possible overestimation.
Inflation will ease to 21% in 2023, from 26.6% in 2022, as the loss of manufacturing capacity, power shortages and only gradual elimination of supply chain disruptions offset weak domestic demand.
Fitch expects the war to continue through 2023 in its current broad parameters, as there are no politically credible concessions to support a negotiated settlement in the near future.
As the Ukrainian News agency earlier reported, last August, Fitch raised Ukraine's long-term credit rating in foreign currency from RD (limited default) to CC (probable default).
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