KIEV, Feb. 18 – Fitch Ratings has assigned Ukraine's $1.5 billion eurobond, due in 2021, a 'B' rating.

According to the agency, the rating is in line with Ukraine's Long-term foreign currency Issuer Default Rating (IDR), which has a Stable Outlook.

Fitch notes that Ukraine faces significant challenges to meeting its budget deficit target of 3.5% of GDP in 2011, agreed with the IMF, as well as implementing major structural reforms on pensions, the energy sector and the banking sector, which are essential elements of its IMF program.

In addition, Fitch believes significant risk remains associated with asset quality in the banking system, sizeable external and fiscal financing requirements, the implementation of stable and consistent macroeconomic policy-making and the country's vulnerability to shocks.