* Fitch cuts Ukraine credit rating on spending, IMF concerns

* Warns c. bank may end up printing money, risking currency

* State railway tries to restructure $550 mln loan

By Sabina Zawadzki

KIEV, Nov 12 (Reuters) - Fitch cut Ukraine's credit rating on Thursday and said a delay in IMF funding coupled with a huge budget gap would lead to more instability, a warning underscored by another state firm seeking to restructure its debts.

Ukraine is in the grip of a deep economic recession which has been made worse by political rivalry, intensified in the run up to a January presidential election, that has derailed Kiev's co-operation with the International Monetary Fund.

Prime Minister Yulia Tymoshenko has already warned a delay in the IMF's release of $3.8 billion this month would make life "extremely difficult" for Ukraine and other ministers have said Kiev's ability to make timely payments for Russian gas could be affected.

Such warnings unnerve European leaders who want to avoid another energy row between Kiev and Moscow during the winter similar to January when Russia cut gas supplies, including those intended to transit Ukraine, and left hundreds of thousands in the cold.