2024-08-03T14:52:00+03:00 Economy 2024-09-15T04:12:08+03:00

Ukrainian news

S&P agency downgrades Ukraine's credit rating to selective default due to restructuring of Eurobonds

S&P agency downgrades Ukraine's credit rating to selective default due to restructuring of Eurobonds

The international rating agency S&P Global lowered the long-term and short-term credit ratings of Ukraine in foreign currency to the level of "selective default" - from CC/C to SD/SD - due to the missed payment of Eurobonds on August 1 against the background of debt restructuring.

"We understand that the government has decided to suspend bond payments pending restructuring. To that end, the government has not made a coupon payment on its 2026 Eurobonds on August 1, 2024, when payment was due, and we do not expect payments during the bonds' contractual grace period of 10 business days," S&P said in a statement on its website.

As a result, as noted, the rating of the 2026 sovereign Eurobond issue was also downgraded to D (default) from CC, while the CC rating for the rest of Ukraine's senior unsecured currency bond issues was confirmed.

At the same time, the agency confirmed the sovereign ratings in the hryvnia (LC) of CCC+/C and the rating on the national scale of uaBB.

"We understand that the state debt of Ukraine, denominated in the hryvnia, is not subject to restructuring. The forecast according to the LC rating is stable," the message states.