Fitch reviews Kernel, rates bond B+

Fitch Ratings said it placed Kernel Holding SA's long-term local-currency and foreign-currency issuer default ratings on Rating Watch Positive (RWP).

The agency also assigned Kernel's planned benchmark dollar-denominated unsecured Eurobond an expected rating of B+(EXP).

Fitch said the RWP reflects the scope for improvement in the company's liquidity if Kernel successfully refinances a substantial portion of its debt with the planned Eurobond and potentially a lengthening of pre-export financing (PXF) facilities.

If successful, this could lead to a one-notch upgrade of Kernel's local-currency issuer default rating to B+ from B and its foreign-currency issuer default rating being rated above Ukraine's B- country ceiling and be aligned with the company's local-currency issuer default rating, the agency explained.

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