KIEV, April 26 - Fitch Ratings has affirmed Naftogaz Ukrayiny’s Long-term foreign and local currency Issuer Default Ratings (IDR) at 'CCC.'

"Naftogaz's ratings reflect its strong links with the state of Ukraine (CCC), its sole shareholder, its weak though gradually improving financial profile and its exposure to political and legal risks. The state continued to support the company in 2015, via equity injections to cover the disparity between imported gas prices and domestic regulated gas prices for households and heating utilities. However, the company's negative operating deficit significantly improved in 2015, and should improve further on the gradual liberalization of the natural gas market. We expect the state will continue to support the company, e.g. by assisting in re-financing its debt portfolio. A significant part of Naftogaz's debt portfolio is represented by domestic banks and is guaranteed by the state," Fitch stated.