Fitch cuts three Ukrainian issuers

Fitch Ratings said it lowered three Ukrainian corporate issuers, NJSC Naftogaz of Ukraine, Ukrenergo and Ferrexpo plc.

The downgrades reflect uncured payment default, announcement of a distressed debt exchange and deterioration of operational conditions, respectively. The rating action also follows Ukraine's sovereign rating downgrade on July 22, the agency said.

Fitch cut Naftogaz to RD from C after the grace period on its missed bond payment ended and it failed to get approval for its consent solicitation. Naftogaz is planning an alternative consent solicitation. The senior unsecured rating is affirmed at C with an RR4 recovery rating.

The agency dropped Ukrenergo's five-year state guaranteed notes' senior unsecured rating to C from CCC following the announcement of a consent solicitation to defer the debt servicing of its notes due in 2026. The recovery rating is RR4.

Finally, Fitch trimmed Ferrexpo's long-term foreign-currency issuer default rating to CCC+ from B- and removed it from rating watch negative on weakened operating conditions in Ukraine and increased country risks.

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