S&P, Fitch downgrade Ukraine’s foreign currency According to Reuters
© Reuters. FILE PHOTO: The Fitch Ratings logo is seen at their office in the Canary Wharf financial district in London, Britain, March 3, 2016. REUTERS/Reinhard Krause
(Reuters) – Global rating agencies S&P and Fitch on Friday downgraded Ukraine’s foreign currency ratings, saying they view the country’s debt restructuring as a problem.
Earlier this week, Ukraine’s overseas creditors backed a request by the country to freeze payments of nearly $20 billion in international bonds that, according to a regulatory filing, would allow the country to become bankrupt. disrupted by war avoid a messy default.
S&P downgraded Ukraine’s foreign currency rating to “SD/SD” from “CC/C.
The rating agency said: “Given the published terms and conditions of the restructuring and in line with our criteria, we consider this transaction to be difficult and equivalent to the possibility of default. “.
Fitch downgraded the country’s long-term foreign currency to “RD” from “C”, as it considered deferring debt payments to complete a difficult debt exchange.
S&P also said macroeconomic and fiscal stress stemming from Russia’s invasion of Ukraine could undermine the Ukrainian government’s ability to maintain local currency debt and lower the country’s currency rating. Eastern Europe down to “CCC+/C” from “B-/B”.
Devastated by the war launched on February 24, Ukraine faces an economic contraction of 35%-45% by 2022 and a monthly financial shortfall of $5 billion.