The international credit rating agency Fitch Ratings has upgraded Kernel’s Long-Term Issuer Default Rating (IDR) from ‘CC’ to ‘CCC-’. The key driver behind this upgrade was the company’s timely redemption of USD 300 million in Eurobonds and improved operational performance.
The ‘CCC-’ rating still reflects high credit risks for Kernel, considering the challenging conditions under which the company operates amid the full-scale invasion. However, according to Fitch, the company continues to deliver solid financial results, notably due to the stable operation of Black Sea export routes.
The refinancing risk has diminished after Kernel fully redeemed its USD 300 million Eurobonds, which matured on October 17, 2024. This was achieved despite certain capital control restrictions imposed by the National Bank of Ukraine, although currency liberalization measures have been implemented.
“The rating upgrade amid wartime is a testament to our prudent liquidity management and a positive signal to the market. Unfortunately, current economic conditions do not yet allow a return to pre-war ratings, but we are doing everything we can to fulfill our obligations to partners and creditors,” commented Serhii Volkov, CFO of Kernel.
