S&P and Fitch consider Ukraine’s agreement to defer payments on public debt a default
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S&P and Fitch downgrade Ukraine’s long-term and short-term foreign currency ratings to SD (selective default) and RD (limited default), respectively. Eurobond issue ratings downgraded to D (default).
The agencies believe that the authorities allowed default by agreeing with Eurobond holders to defer payments on public debt for 24 months. “We understand that the required majority of Ukraine’s Eurobond holders… have accepted the offer. We view this debt restructuring as problematic in accordance with our rating definitions,” S&P said in a statement.
S&P downgraded Ukraine’s national currency rating from B-/B to CCC+/C, Fitch retained the respective rating at CCC-.
Creditors of Ukraine agreed to freeze the country’s payments on Eurobonds until 2024. As Bloomberg reported, Ukraine’s foreign debt is $19.6 billion. Kyiv informedthat the solution would save nearly $6 billion over two years.
On the situation in the Ukrainian economy – in the material “Kommersant” “The hryvnia has fallen in price by a quarter”.
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