Fitch downgraded DTEK, Metinvest and large agricultural holdings

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Fitch Ratings has downgraded the largest private energy holding DTEK, metallurgical holding Metinvest, mining and metals holding company Fintest Trading and also largest agricultural holdings of Ukraine to “CCC” national level, following the actions on lowering of Ukraine’s sovereign ratings, reported the agency.

“The rating actions were provided by lowering of the default long-term rating of the issuer of Ukraine in the national currency from “B” to “CCC” and confirmation of the sovereign long-term rating in the foreign currency at “CCC”, according to the agency.

It is stated that lowering of the ratings concerns such agricultural holdings as Avangard, Kernel, Mriya, Creative Group, MHP, UkrLandFarming. The ratings of the metallurgical holding Metinvest and holding company group Donetsksteel – Fintest Trading were also lowered.

In addition, Fitch introduced changes to the ratings of these companies on a national scale. In particular, the rating of Avangard was lowered from “AA+” to “A” on national scale, based on the stable forecast. The ratings of Mironivskiy Hliboproduct (MHP) were lowered from “AA+” to “AA-”, UkrLandFarming – from “AA+” to “A” and Kernel – from “AA+” to “A”, based on the stable forecast.

At that, the rating of Creative Group was upgraded from “BBB+” to “A-”, based on the stable forecast, and the rating of Mriya was confirmed at “C”.

The national long-term rating of DTEK energy holding was upgraded from “BB+” to “BBB-”, based on the stable forecast, according to Fitch. However, in connection with the worsening of the situation in the east of Ukraine and further decline in production, the national rating of Metinvest was downgraded from “AA+” to “BBB”, based on the stable forecast. In addition, the rating of Donetsksteel – Fintest Trading Co was confirmed at “C”.