Fitch lifts Kernel to A-(ukr)

Fitch Ratings said it affirmed Kernel Holding SA’s long-term foreign- and local-currency issuer default ratings at CCC.

The agency also said it upgraded the company’s national long-term rating to A-(ukr) from BBB+(ukr).

The outlook is stable.

The ratings reflect political and economic uncertainty in Ukraine, where Kernel’s assets and operations are mainly based, Fitch said.

This uncertainty may threaten the company’s financial flexibility and ability to meet its debt obligations, the agency said.

The company has a number of strong credit factors, including an export-oriented business model and a large portion of cash balances kept outside Ukraine, Fitch said.

Nevertheless, the agency said it considers these factors are not sufficiently strong to justify rating the company above the country ceiling of CCC, especially in light of its liquidity and refinancing risks.

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