WASHINGTON

Fitch Ratings said Monday that it upgraded Ukraine's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'CCC' from 'Restricted Default.’

The rating agency said the move reflects its assessment that Ukraine has normalized relations "with a substantial majority of its external commercial creditors."

On Dec. 19, the European Union agreed on a new €90 billion ($105.9 billion) loan for Ukraine that would only need to be repaid in benign circumstances.

"This would cover financing needs for more than a year, reducing near-term debt sustainability risks," Fitch said.

Fitch noted that it typically does not assign outlooks to sovereigns with a rating of 'CCC+' or below.