Source: APKinform (Ukraine)
Fitch Ratings downgraded Ukraine's credit rating from "C" to "Restricted Default" on August 13, citing the end of the grace period for repayment of Eurobonds in 2026, Reuters reported.
The report said Ukraine defaulted on its bonds after it passed a law allowing it to suspend payments on foreign debt until October 1 of this year. Earlier this month, Ukraine began the process of obtaining bondholders' approval to restructure $20 billion worth of international bonds. Dollar to catch up.
Following the Russian invasion, Ukraine sought to restructure its war debt as part of its efforts to regain access to international capital markets.
Fitch maintained the rating of Ukraine's local currency (LC) debt at 'CCC-' as LC debt is expected to be excluded from a restructuring agreement with external commercial creditors.
The rating agency S&P Global also downgraded Ukraine to “selective” insolvency on August 2.
It should also be remembered that Fitch does not typically give an outlook to countries rated “CCC+” or lower.