S&P and Fitch downgrade Ukraine's foreign currency ratings
S&P downgraded Ukraine's foreign currency rating to SD/SD from CC/C (Photo:REUTERS/Valentyn Ogirenko/Illustration)
International credit rating agencies S&P and Fitch have lowered the rating of non-hryvnia Ukrainian bonds from SD/SD from CC/C, reported Reuters on Aug. 13, following Ukraine’s introduction of a two-year deferral on Eurobond payments.
"Given the announced terms and conditions of the restructuring, and in line with our criteria, we view the transaction as distressed and tantamount to default," the rating agency said in a statement.
Fitch also downgraded the country's long-term foreign currency rating from C to RD, as it views the debt deferral as a completion of a distressed debt-exchange.
Meanwhile, S&P believes that macroeconomic and fiscal stress caused by Russia's invasion of Ukraine could weaken the Ukrainian government's ability to meet its local currency debt obligations as well, and downgraded the country's local currency rating to CCC+/C from B-/B.
Earlier, Fitch also lowered the credit rating of Ukraine’s rail operator, Ukrzaliznytsia, from CCC to C, against the background of the downgrade of Ukraine's sovereign rating.
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