International ratings agency Fitch Ratings has upgraded the credit rating of NPC Ukrenergo from “RD” (restricted default) to “CCC”. The decision was taken after the successful completion of the company’s debt restructuring.
This was reported by Ukrenergo.
The restructuring enabled the company to reduce its debt burden, change repayment terms and extend maturities. The upgrade indicates that the immediate threat of default has been removed, although financial risks remain significant.
On 15 October, Ukrenergo completed the restructuring of its Eurobonds. The total amount of claims on them was reduced from $1.086bn to $825m in principal and $261m in accrued interest to $494.75m. The new terms provide for an annual coupon of 8.6% and final maturity in 2041.
In addition, the company issued new unsecured bonds worth $395m with an annual coupon of 8.5% and maturity in 2031.
Thanks to the changes to its debt terms, Ukrenergo expects to save around $135m. The funds are planned to be directed towards restoring damaged grid infrastructure and strengthening the resilience of Ukraine’s power system.
At the same time, the company’s financial position continues to be affected by the consequences of Russian attacks on energy infrastructure, substantial spending on power-grid repairs, and limited access to financing during the war.
Despite these challenges, Fitch forecasts an improvement in Ukrenergo’s financial performance in 2027. A key factor for the company also remains the likelihood of state support.