Kernel : FITCH UPGRADES KERNEL’S LOCAL CURRENCY ISSUER DEFAUL RATING ONE NOTCH ABOVE THE SOVEREIGN

15 September 2016

FITCH UPGRADES KERNEL'S LOCAL CURRENCY ISSUER DEFAUL RATING ONE NOTCH ABOVE THE SOVEREIGN

In a press release issued today, Fitch Ratings upgrades Long-Term Local Currency IDR (LT LC IDR) of Kernel Holdings S.A. to B-, one notch above the sovereign LT LC IDR of 'CCC', reflecting Kernel's export-oriented business model and limited reliance on Ukrainian banking system.

While Kernel's Long-Term Foreign Currency IDR remains constrained by Ukraine's Country Ceiling of 'CCC', Fitch notes that having a debt service ratio above 1x sustainably for several years, could justify one-notch uplift in accordance with Fitch's criteria.

Fitch also upgraded Kernel's National Long-Term Rating to 'AA+ (ukr)' from 'A- (ukr)', assigning the National rating a 'Stable' Outlook.

For a full text of the press release related to the rating update, please refer to the following link: Fitch Affirms Ukraine's Kernel's FC IDR at 'CCC', Upgrades LC IDR to 'B-'. The definition of capitalized terms and applicable research criteria can be accessed at Fitch's Corporate Rating Methodology.

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