S&P and Fitch downgraded Ukraine’s foreign currency rating ,
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KYIV. UkraineGate .13. August . 2022 | Economy.
International rating agencies S&P and Fitch on Friday downgraded Ukraine’s foreign currency ratings to selective default and limited default as they consider the country’s debt restructuring problematic.
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Earlier this week, Ukraine’s foreign creditors supported the country’s request for a two-year freeze on payments for nearly $20 billion in international bonds. Prime Minister Denys Shmyhal said that this step will save Ukraine about 6 billion dollars in payments.
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“Given the announced terms of the restructuring and consistent with our criteria, we view this transaction as problematic and tantamount to default,” S&P said.
S&P added that macroeconomic and fiscal stress caused by Russia’s invasion of Ukraine could weaken the Ukrainian government’s ability to keep up with domestic currency debt and downgraded the Eastern European country’s domestic currency rating.
As noted in the publication, due to the war, Ukraine is threatened with an economic decline of 35-45% in 2022 and a monthly budget deficit of 5 billion dollars.
Source: Ukrgate
