The international credit rating agency Fitch has downgraded Ukraine's Long-Term Foreign-Currency Issuer Default Rating from CCC to C (pre-default), the firm announced in a report published on July 22.
The decision is related to Kyiv's plans to negotiate with creditors to defer payments on public debt for two years. The agency hasn’t ruled out a downgrade to RD (limited default).
Fitch downgraded Ukraine's rating from B to CCC after the start of the full-scale Russian invasion at the end of February.
As reported, the Ministry of Finance of Ukraine will ask foreign creditors for a deferral. This will be a reversal for Kyiv, which from the beginning of the war insisted on the full payment of its obligations.
Earlier, the IMF noted that Ukraine is “carefully” servicing its external debt and the country doesn’t need deferred payments. The Foundation called for partner countries to additionally support the country with grant funding.