The agency justified this move by postponing public debt payments, which Ukraine received on August 10.
International rating agencies Standard & Poor’s Global Ratings (S&P) and Fitch downgraded Ukraine’s foreign currency rating. This is because of Ukraine’s external debt, its restructuring, according to analysts, may be problematic.
Thus, S&P downgraded Ukraine’s long- and short-term credit ratings to “selective default” – one notch above full default. S&P justified this move by postponing state debt payments, which Ukraine received on August 10. S&P sees it as “akin to a default.”
In this regard, Fitch downgraded Ukraine’s long-term foreign currency rating from C to RD, as it considers the postponement of the debt repayment to be the completion of the distressed debt swap.
Since the start of the Russian invasion, output in Ukraine has plummeted. Kyiv received from the holders of Ukraine’s international bonds permission to postpone payments for two years. Ukraine’s foreign debt is estimated at 20 billion US dollars.
Recall that the Western media previously reported that Kyiv will ask creditors for a postponement of external debts, because Ukraine needs money in case of a protracted war with the Russian Federation.
The Cabinet of Ministers approved a resolution on the two-year delay in the payment of external debts.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.