Fitch has downgraded Vodafone Ukraine's credit rating
The international rating agency Fitch Ratings has downgraded the credit rating of Vodafone Ukraine. The issuer’s long-term default rating and the operator’s senior unsecured debt rating have been lowered from “CCC” to “CCC-”.
This is statedin the agency’s report, as reported by Interfax-Ukraine.
The downgrade reflects the significant refinancing risk associated with the company’s Eurobonds ($280.1 million outstanding as of December 2025) as their maturity approaches in February 2027.
The agency expects the National Bank of Ukraine to continue restricting cross-border payments by private companies in foreign currency to meet external debt obligations.
Fitch forecasts that Vodafone Ukraine will have limited access to international capital markets and insufficient liquidity in foreign accounts to cover the upcoming maturity.
At the same time, the agency added that the mobile operator’s ratings remain supported by its strong position in the Ukrainian mobile market and high profitability.
"We assess that Vodafone Ukraine will have sufficient liquidity for operating activities and debt repayment once the NBU grants permission for foreign currency payments," the agency noted.
Bonds maturing in February 2027 with a coupon rate of 9.625% per annum were issued for $300 million.
On April 24, 2025, Vodafone Ukraine announced the accrual of dividends to its shareholder in the amount of UAH 660.245 million ($15.9 million at the exchange rate specified in the announcement) for 2024.
In accordance with National Bank restrictions, these dividends will be paid in separate monthly installments in hryvnia, each amounting to 1 million euros.
The company emphasized that, under the terms of the bond issue, it must in this case offer all bondholders the opportunity to submit an application to sell their bonds for an amount equal to the dividends paid outside Ukraine.
Since the end of May last year, Vodafone Ukraine has repurchased its own Eurobonds worth $24.4 million following nine offers.
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