Fitch lowered Ukraineʼs credit rating — now it is at the pre-default level

Author:
Olha Bereziuk
Date:

The Fitch Ratings rating agency has downgraded Ukraineʼs credit rating from CC (very high credit risk) to C (imminent default).

The relevant notice was published on the agencyʼs website.

Fitch explains that the agreement on the restructuring of Eurobonds, adopted after the law adopted by the parliament, allows the suspension of payments on external commercial debt and marks the beginning of a process similar to default.

According to Fitch, the agreement with the creditors is a "problem debt exchange" as it involves reducing the principal amount of the debt and interest, as well as extending the repayment terms.