S&P agency downgraded Ukraine to pre-default rating
International rating agency Standard & Poor’s has downgraded Ukraine’s long-term sovereign credit rating in foreign currency to pre-default.
Previously, it was at the level of CCC+, but now it is at the CC level with a further negative outlook.
Bloomberg explained that the credit rating was lowered to pre-default after Ukraine asked foreign creditors for permission to postpone foreign debt payments.
It is possible that Standard & Poor’s could downgrade it again to selective default if bondholders agree to a two-year payment freeze and a change of vouchers to so-called GDP warrants by the middle of next month.
On 23 July, Fitch Ratings downgraded Ukraine’s credit rating to pre-default. The decision was also linked to Ukraine’s plans to agree with creditors on a two-year deferral of payments on the national debt.
After the request is agreed upon, Ukraine’s long-term rating will be lowered to RD (Restricted Default).
Source: Standard & Poor’s
