The Strategist

Fitch and S&P consider Ukraine's debt restructuring as default

08/15/2022 - 11:14

Fitch Ratings and S&P Global Ratings, two influential international rating organizations, have reduced Ukraine's foreign currency ratings to "RD" (restricted default) and "SD," respectively.

Mr ATM via flickr
Mr ATM via flickr
Fitch Ratings claims that the country could complete a distressed debt exchange and delay making payments on its external public debt until 2024.

In turn, S&P lowered Ukraine's foreign currency rating from "CC/C" to "SD/SD", according to Reuters.

In a statement, S&P noted, "Given the announced parameters of the restructuring, and in accordance with our standards, we believe the deal to be problematic and tantamount to default."

Bloomberg reported earlier that Kiev had been successful in getting consent from global bondholders to halt loan payments until 2024. It was clarified that the issue at hand concerned Ukraine's 19.6 billion dollar debt.



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