KYIV. UkraineGate . 18 . August .2022 l Economy.
Fitch rating agency raised Ukraine’s rating to “SS” (probable default), the agency said in a statement .
Citation
“Fitch Ratings has raised Ukraine’s long-term foreign currency issuer default rating (LTFC) from RD to CC (limited default),” the statement said.
Details
The agency explained the increase in Ukraine’s rating to “CC” by the consent of creditors to the request for restructuring of the country’s external debt dated August 11. This, according to analysts, is “the end of the exchange of bad debt (DDE), which allows us to move away from the ‘limited default’.
Thus, the payment of principal and interest on Ukrainian Eurobonds in the amount of about USD 6 billion was postponed for 24 months, which, as stated, “eased the pressure on servicing external debt in the context of weakening international reserves and the urgent need for expenditures related to the war.” 75% of bondholders (at the aggregate nominal amount) agreed to the restructuring, which exceeds the required minimum of 66.7%.
Supplement
Eurobond holders approved Ukraine’s proposal to postpone payments for two years.
Source: Ukrgate
