OREANDA-NEWS. Fitch Ratings has today affirmed OJSC Naftogaz of Ukraine's ("Naftogaz") local and foreign currency Issuer Default ratings ("IDRs") at 'B+' and removed them from Rating Watch Negative ("RWN"). A Stable Outlook is assigned.

The senior unsecured rating on the company's USD500 million eurobond maturing in 2009 is also removed from RWN and affirmed 'B+' and the issue's Recovery Rating is affirmed at 'RR4'.

Fitch placed Naftogaz on RWN on 26 October 2006 following the announcement that Ukraine is to pay USD130 per thousand cubic meters (mcm) of gas in 2007 compared to USD95/mcm in 2006.

The ratings are affirmed after Fitch received information from Naftogaz outlining a plan to deal with its rising imported gas cost base.

This includes raising domestic gas prices by 35%-36% in 2007, in line with the recently announced import gas price increase.