Moody's assigns B3 to Ukrenergo notes

Moody's Investors Service said it assigned a definitive B3 rating on the dollar-denominated, up to €750 million equivalent, guaranteed senior unsecured notes to be sold by Ukrenergo due 2026. Concurrently, Moody's assigned a stable outlook to Ukrenergo.

“The assigned B3 rating is based solely upon the unconditional and irrevocable guarantee of all amounts payable to be provided by the minister of finance of Ukraine, on behalf of the cabinet of ministers of Ukraine,” the agency said in a press release.

Ukrenergo will use the proceeds to repay amounts owed to the state-enterprise guaranteed buyer. The guaranteed buyer pays renewable generators a premium over wholesale market prices for the electricity they produce, and receives all its funding from Ukrenergo, who in turn recovers the monies through regulated tariffs.

The stable outlook reflects Moody’s outlook on Ukraine, the agency said.

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