The international rating agency Fitch Ratings upgraded the long-term issuer default rating (IDR) of PJSC “National Energy Company “Ukrenergo” to “CCC” from “RD” (restricted default) following the restructuring of its state-guaranteed “green” bonds worth $825 million with a coupon rate of 6.875% per annum, on which interest of $261 million had also accrued.
“The rating upgrade reflects Fitch’s view that Ukrenergo no longer faces an immediate risk of default following the completion of the restructuring in October 2026, which reduced its debt and extended its debt maturities,” the agency noted in a statement on its website.
It added that the rating also reflects close ties to Ukraine, which has a “CCC” rating, as the government guarantees approximately 80% of Ukrenergo’s debt.
Fitch noted that Ukrenergo’s standalone credit profile (SCP) remains constrained due to limited access to financing, a weak operating environment in Ukraine, war-related disruptions, high volatility in energy demand and supply following shelling, and the need to maintain grid operations, which negatively impacts the company’s liquidity and financial performance. At the same time, the SCP reflects Ukrenergo’s monopoly role in electricity transmission and the “cost-plus” tariff system, which supports its financial results.
The agency noted that 97.5% of bondholders agreed to the restructuring. A portion of their bonds was repurchased at 67.4% of face value, and in exchange for the remainder, they received new unsecured bonds totaling $395 million with a yield of 8.5% and a maturity date in 2031.
Ukrenergo financed the cash component by raising $494.8 million through the issuance of secured restructuring bonds with an 8.6% interest rate and a maturity date in 2041 by a special purpose vehicle (SPV), Mavka Finance DAC. These bonds are insured against political risks by the U.S. International Development Finance Corporation (DFC). In turn, Mavka Finance DAC received from Ukrenergo modified bonds totaling $494.8 million, maturing in 2041 and retaining the state guarantee. Ukrenergo pays the SPV the proceeds from the restructured bonds, while the SPV uses the funds received from Ukrenergo to service the DFC-insured bonds.
Fitch forecasts that Ukrenergo’s EBITDA will fall to 4 billion UAH in 2026 from 8.4 billion UAH in 2025, primarily due to losses from balancing operations. However, according to the agency’s estimates, it is expected to recover to nearly 10 billion UAH in 2027, driven by improved results from balancing operations following anticipated favorable regulatory changes and an increase in electricity transmission tariffs due to an improved revenue-to-expense ratio. The tariff increases, the most recent of which was a 25% hike in August 2026, reflect a decline in transmission volumes in 2026 and rising costs, including technical losses and increased debt service payments, according to the press release. Transmission volumes are likely to fall by approximately 6% in 2026 and remain low in 2027, according to Fitch.
“We expect the average transmission tariff to rise by approximately 17% in 2027 and by 8% in 2028, reflecting rising costs and declining volumes,” the statement said.
The agency emphasized that Russian attacks on energy infrastructure remain the main risk for Ukrenergo, and the company’s top priority is repairing and maintaining the operational capacity of its power grid, which is consuming resources and depleting liquidity. The company is actively seeking grants and debt financing from international financial institutions (IFIs). Fitch expects capital expenditures to average more than 8 billion UAH per year in 2026–2028, excluding capital expenditures directly financed by IFIs and donors.
The agency noted that all Ukrainian energy companies it rates face limited liquidity and high operational risks.
Ukrenergo’s Rating “CCC” reflects a reduction in the risk of immediate refinancing following the restructuring, in contrast to DTEK Energy BV’s “CCC-” rating with bonds maturing in December 2027 and DTEK Renewables BV’s “CC” rating with bonds maturing in November 2027.
As previously reported, in 2025, Ukrenergo reduced its net loss by a factor of 3.6—to 10.67 billion UAH—and increased its revenue by 6.5%—to 107.74 billion UAH.
“The main result is approximately $135 million in savings, which will be directed toward restoring power grids damaged by Russian attacks and increasing the resilience of the Ukrainian power system,” – commented First Deputy Prime Minister and Minister of Energy Denys Shmyhal on the restructuring, adding that the burden on Ukrenergo’s electricity transmission tariff will also be minimized.
On September 24, PJSC “National Energy Company ”Ukrenergo” announced a tender for insurance of leased property.
According to the Prozorro electronic government procurement system, the estimated cost of the services is 199,900 UAH.
The deadline for submitting bids is October 12.
On September 3, PJSC “National Energy Company (NEC) ”Ukrenergo” announced its intention to enter into a contract with Transmagistral Insurance Company for voluntary health insurance services for its employees. According to the Prozorro electronic government procurement system, Transmagistral Insurance Company submitted the lowest bid—77.989 million hryvnias—compared to the expected cost of 111.975 million hryvnias for the services.
Also participating in the tender were the insurance companies “VUSO” with a bid 1 UAH higher, the “TAS” Insurance Group—1 UAH higher than “VUSO’s”—and “Kraina” with a bid of 84.3 million UAH.
As previously reported, the “TAS” Insurance Group was the winner of a similar tender a year earlier.
“Ukrenergo” operates trunk and interstate power transmission lines and also provides centralized dispatch control of the country’s unified power system. The National Electricity Transmission Company is a state-owned enterprise under the jurisdiction of the Ministry of Energy and Coal Industry of Ukraine.
The Ukrainian Renewable Energy Association (UREA) supports the revision of electricity transmission tariffs for NPC “Ukrenergo” and proposes simultaneously launching the practical implementation of a mechanism to protect vulnerable electricity consumers and accelerating the introduction of targeted monetary support for the population.
This is stated in the association’s official letter addressed to the National Commission for State Regulation of Energy and Public Utilities (NEURC) and the Ministry of Energy of Ukraine, published on Facebook.
“The UAVE emphasizes: the discussion should not be limited solely to the tariff rate. A comprehensive solution is needed—a financially sound tariff must be combined with a gradual reduction of cross-subsidization and the launch of targeted monetary support for vulnerable consumers,” the association stressed.
The UAVE also considers it necessary to work with the Ministry of Social Policy, Ukrenergo, distribution system operators (DSOs), and other stakeholders to develop a data-sharing mechanism for launching targeted monetization of subsidies.
The association asserts that this approach will help maintain the financial stability of the energy sector, preserve social protection for the population, and reduce distortions in the electricity market. The transition to targeted support also aligns with Ukraine’s commitments regarding market liberalization to the EU, the IMF, and other international partners.
In turn, as stated in the association’s appeal to the NEURC and the Ministry of Energy, the UEA supports Ukrenergo’s position on the electricity transmission tariff, as the financial stability of the transmission system operator (TSO) is critical for the reliable operation of the power system, the fulfillment of special obligations, stable settlements between market participants, and the restoration of energy infrastructure.
The association cited Ukrenergo data, according to which the projected volume of electricity transmission in 2026 will be approximately 89.6 million MWh, which is significantly lower than the figure used when setting the current tariff. At the same time, costs to cover transmission losses have increased, the configuration of power grids is changing, and the volumes of electricity imports and long-distance transmission are growing—a situation that, against the backdrop of ongoing damage to energy infrastructure, requires significant financial investment.
“Trends such as the accumulation of debt among market participants, deteriorating payment discipline, reduced opportunities for the restoration and development of grid infrastructure, and a decline in the investment attractiveness of the energy sector—all in the absence of a source to cover the TSO’s costs—will intensify,” the UAVE emphasized.
At the same time, as the association noted, amid systematic attacks on energy infrastructure, the development of distributed generation, renewable energy sources (RES), and energy storage systems has become one of the key elements of energy security, as these facilities provide additional stability to the power system, increase its flexibility and maneuverability, and reduce the risk of shortages.
“Therefore, ensuring timely and predictable payments to renewable energy producers is not only a matter of fulfilling financial obligations but also a crucial factor in the further development of Ukraine’s energy resilience,” the UAVE concluded.
As reported, the NEURC proposes setting the tariff for NPC “Ukrenergo” for electricity transmission at 903.53 UAH/MWh (excluding VAT) effective July 1, 2026, which is 21.62% higher than the current rate.
It is noted that the updated tariff component for Ukrenergo’s special obligations regarding payment for electricity from alternative sources amounts to 367.56 UAH/MWh within the transmission tariff structure.
Accordingly, it is proposed to increase the dispatch tariff by 7.83% to 118.64 UAH/MWh.
On April 24, PJSC “National Energy Company (NEC) ”Ukrenergo“” announced a tender for voluntary motor vehicle insurance (CASCO) services.
According to the Prozorro electronic public procurement system, the estimated cost of the services is UAH 6.991 million.
The deadline for submitting bids is May 4.
On April 24, PJSC “National Energy Company (NEC) ”Ukrenergo“” announced a tender for comprehensive motor vehicle insurance services.
According to the Prozorro electronic public procurement system, the estimated cost of the services is 6.991 million UAH.
The deadline for submitting bids is May 4.
