OREANDA-NEWS. Fitch Ratings has today placed OJSC Naftogaz of Ukraine's ("Naftogaz") local and foreign currency Issuer Default ratings ("IDRs") of 'B+' on Rating Watch Negative ("RWN").

This follows the announcement that Ukraine is to pay USD130 per thousand cubic meters (mcm) of gas in 2007 compared to USD95/mcm in 2006.

The senior unsecured 'B+' rating on the company's USD500 million eurobond maturing in 2009 is also placed on RWN, while the issue's Recovery rating is affirmed at 'RR4'.

Fitch is waiting for information from Naftogaz regarding the exact impact that the new pricing scheme is expected to have on its business and financial profile. The agency expects to resolve the Rating Watch within the next five business days.