Fitch lifts Kernel local ratings

Fitch Ratings said it upgraded Kernel Holding SA's long-term local-currency issuer default rating to B- from CCC and national long-term rating to AA+(ukr) from A-(ukr).

The outlook is stable.

Fitch also said it affirmed Kernel's long-term foreign-currency issuer default rating at CCC.

The upgrades reflect Kernel's resilience to political and economic turmoil in Ukraine due to its export-oriented business model and limited dependence on the Ukrainian banking system, Fitch explained.

These factors, along with the company’s strong credit metrics, allow for local ratings one notch higher than Ukraine's local-currency issuer default rating of CCC, the agency said.

The company’s other ratings are constrained by Ukraine's country ceiling of CCC, Fitch added.

The ratings also consider the company’s strong performance over the past two years with good access to external liquidity despite economic and political turmoil in Ukraine, the agency said.

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