HomeEconomyFitch upgraded Ukraine's credit...

Fitch upgraded Ukraine’s credit rating

The increase in the long-term default rating is due to external debt restructuring.

International rating agency Fitch has upgraded Ukraine’s foreign currency credit rating from RD (limited default) to CC (insufficient creditworthiness). This was stated in a report published on August 17.

The upgrade follows an Aug. 11 approval for external debt restructuring, which the agency says eliminates “limited default.”

“Principal and interest payments on approximately $6 billion of Ukrainian Eurobonds have been postponed for 24 months, easing pressure on external debt servicing in the context of weakening international reserves and severe spending needs related to to war,” Fitch analysts said.

The restructuring was approved by 75% of the bondholders (at an aggregate nominal value), exceeding the required minimum of 66.7%.

“Despite this debt service relief, the CC rating reflects the unresolved debt sustainability risks associated with a Russian attack, as well as the severe stress of the public and external fiscal and positional macro-financial of Ukraine. We expect the war to continue until 2023, leaving public debt exceeding 100% of GDP,” the agency asserted.

Recall that at the end of July, Fitch lowered Ukraine’s long-term default rating from CCC to C (pre-default), and then to RD (limited default).

Last week, Ukraine was granted a grace period on its external debt. Foreign creditors have frozen payments on international bonds for two years to prevent a default.

News from Correspondent.net on Telegram. Subscribe to our channel Athletistic

Source: korrespondent

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

- A word from our sponsors -

Read Now

The President signed the Law on 50% of the Motagrass for Veterans

The President of Ukraine signed a law that reduces the cost of a motorcycle by 50% for veterans and persons with disabilities as a result of the war (No. 4369-IX). .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px;...

GBI was struck by anger, the requirement of short -term reconciliations of SOC without Boytsov’s order

Employees of the State Bureau of Investigations exposed military personnel in the Nikolaev area, who demanded that the military left some of the military in exchange for returning to the service. .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height:...

In Priluki, the Cisland arrived at the post of drone in his house, where he was killed

The rescuer arrived in Pryluky to eliminate the effects of a drone that fell into his house, where his family was killed. .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px; }} .Adsbygoogle {Touch-Action: Manipulation; } ...