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 Eurobond repayments in 2026, Reuters reported.
The report said Ukraine had defaulted on its bonds after it passed a law allowing it to suspend payments on foreign debt until October 1 this year. Earlier this month, Ukraine began the process of seeking bondholders’ approval to restructure 20 billion dollars worth of international bonds.
Following Russia’s invasion, Ukraine has been seeking to restructure its war debt as part of its efforts to regain access to international capital markets.
Fitch maintained Ukraine’s local currency (LC) debt rating at ‘CCC-‘ as LC debt is expected to be excluded from any restructuring agreement with external commercial creditors.
The rating agency S&P Global also downgraded Ukraine to ‘selective’ default on August 2.
It should also be recalled that Fitch does not normally give an outlook to countries with a rating of “CCC+” or lower.