S&P and Fitch practically declared default of Ukraine

Rating agencies S&P and Fitch lowered Ukraine’s long-term and short-term ratings in foreign currency to SD (selective default) and RD (‘restricted default) respectively. Eurobond issue ratings downgraded to D (default). This is reported in the information of the agencies.

Rating agencies believe that the Ukrainian authorities defaulted by agreeing with the Eurobonds’ owners to postpone payments on the national debt for 24 months.

“As we understand, the majority of Ukrainian Erurobonds’ owners… accepted the offer. We view this debt restructuring problematic in line with our ratings definition,” S&P said in a statement.

S&P lowered the rating in the national currency of Ukraine from B-/B to CCC+/C, Fitch maintained the corresponding rating at the level of CCC-.

“To the disappointment of the Russian “experts” and with those who them rub the hands in unison of our self-proclaimed professors from social networks, there is no betrayal. As well as default. The rating downgrade reflects Ukraine’s reaching an agreement with creditors, who represent 75% of Eurobond owners, to postpone the repayment and servicing of such debt until 2024. An agreement on restructuring was also reached with the owners of GDP – warrants,” – wrote Danylo Hetmantsev, chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy.

As GMK Center reported earlier, Foreign investors agreed to postpone payments on Ukraine’s foreign debt in the amount of $20 billion until 2024 with a possible extension for another year. According to the Ministry of Finance, there are a total of 13 issues of Ukrainian Eurobonds with a total nominal value of $17.26 billion and €2.25 billion on the market.

Also, Ukraine’s group of creditors, consisting of Canada, France, Germany, Japan, the UK and the US, support and strongly recommend that holders of Ukraine’s Eurobonds accept its offer to defer payments and redemption for two years.