Fitch raises Ukraine credit rating one notch to B

NEW YORK, July 6 (Reuters) - Fitch Ratings on Tuesday raised its sovereign foreign currency credit rating on Ukraine one notch to B from B-minus, citing the government's new loan agreement with the International Monetary Fund.

The rating outlook is stable, the firm said.

On July 3 the IMF said it had agreed to recommend a loan of $14.9 billion to Ukraine in a deal aimed at helping the country fill its budget gap while boosting investor confidence.

"The upgrade of Ukraine's sovereign ratings follows the agreement on a new $14.9 billion IMF loan programme which supports confidence in the policy and financing outlook, reduces the risk of macroeconomic and financial instability and is positive for the country's credit-worthiness," David Heslam, sovereign credit analyst at Fitch said in a statement.

Fitch's rating is still highly speculative but now matches Standard & Poor's as well as Moody's Investors Service's B2 rating. (Reporting by Daniel Bases and Caryn Trokie; Editing by James Dalgleish)