Fitch downgraded Ukraine’s credit rating to “Restricted Default” from “C” on Tuesday, citing the expiration of the 2026 Eurobond repayment grace period, Reuters reported.
Ukraine defaulted on its bonds after a law came into effect allowing it to suspend foreign debt payments until October 1. Earlier this month, Ukraine began the process of getting bondholders’ consent to restructure $20 billion worth of international bonds.
Ukraine has been pushing hard since Russia’s invasion to restructure its wartime debt as part of efforts to regain access to international capital markets.
Fitch maintained Ukraine’s local currency (LC) debt rating at ‘CCC-‘ as it expects LC debt to be excluded from a restructuring deal with external commercial creditors.
Rating agency S&P Global also downgraded Ukraine to “selective” default from August 2.
Fitch does not usually assign outlooks to countries rated CCC+ or lower.
