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Fitch keeps Ukraine at 'Restricted Default' rating as funding efforts continue
Published by Global Banking & Finance Review®
Posted on May 23, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 23, 2025
2 min readLast updated: January 23, 2026
Fitch maintains Ukraine's 'Restricted Default' rating as the country navigates economic challenges and debt restructuring amid ongoing conflict.
(Reuters) -Fitch affirmed Ukraine's long-term foreign currency sovereign credit rating at "Restricted Default" on Friday, as the war-torn nation continues to navigate diplomatic tensions and a significant erosion of its finances.
Kyiv is undergoing extensive debt restructuring after more than three years of conflict with Russia, which has devastated the Ukrainian economy.
In the first year of the war, Ukraine's gross domestic product fell by nearly 30%. It is still lower than its pre-war levels, but delivered modest growth in 2023 and 2024.
Fitch said it will maintain the rating until Ukraine normalizes relations with a "significant majority" of external creditors, and noted high funding uncertainties in 2026 and unclear benefits from a U.S. minerals deal.
While the International Monetary Fund began a new review of its $15.5 billion program to Ukraine this week, the country failed to reach a deal with GDP-linked debt holders last month.
Moscow and Kyiv have also sought to show efforts towards peace after U.S. President Donald Trump prioritized ending the war.
Although talks in Turkey did not yield a breakthrough, Russia and Ukraine on Friday freed 390 prisoners each in what is expected to be the biggest prisoner swap of the war so far.
(Reporting by Khusbu Jena and Pushkala Aripaka in Bengaluru; Editing by Vijay Kishore)
Fitch affirmed Ukraine's long-term foreign currency sovereign credit rating at 'Restricted Default'.
Fitch will maintain the rating until Ukraine normalizes relations with a significant majority of external creditors and noted high funding uncertainties in 2026.
Ukraine's gross domestic product fell by nearly 30% in the first year of the war but has shown modest growth in 2023 and 2024.
No, Ukraine failed to reach a deal with GDP-linked debt holders last month.
Although talks in Turkey did not yield a breakthrough, Russia and Ukraine recently conducted a significant prisoner swap, freeing 390 prisoners each.
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