Fitch drops Naftogaz to 'RD'

Fitch Ratings downgraded Naftogaz of Ukraine’s long-term foreign and local currency issuer default ratings from ‘C’ to ‘RD’ (restricted default); both ratings have been placed on ratings watch evolving. At the same time, Fitch confirmed Naftogaz; senior unsecured rating on its USD 500 mln Eurobonds at ‘C’ and its recovery rating at ‘RR4.’ Fitch’s move follows the company’s announcement yesterday that it did not redeem the Eurobonds on its maturation date, September 30, and is seeking to restructure the bonds.