"Growth will likely remain weaker than 'B' rated peers, despite a forecast recovery. Fitch forecast growth at 2% for 2017 and expects Ukraine to accelerate to 3.2% and 3.7% in 2018 and 2019, respectively, driven by domestic demand," Fitch Ratings said in a press release.

Read alsoFitch affirms Ukraine at 'B-', outlook stable"Inflation will average 12.9% and finish 2017 above the National Bank of Ukraine's (NBU) target band of 8%-2% due to supply shocks (food prices). However, it is likely to decline gradually over the forecast period and average 7.8% in 2019, still above the 5% 'B' median," it said.