Rating agency Fitch Ratings
Rating agency Fitch Ratings downgraded Ukraine’s credit rating to the level of limited default (RD) after the country announced the restructuring of its Eurobonds, writing off a large part of the debt. This decision was taken on August 13 and was the result of the non-payment of coupon income on Eurobonds for 750 million dollars.
As reported by Fitch, the restructuring, which provides for the write-off of 37% of the debt amount, led to the downgrading of Ukraine’s rating from level C to RD. This happened after the end of the 10-day grace period, during which Ukraine had to make a coupon payment for Eurobonds-2026.
“The downgrade to the RD level reflects the end of the grace period for the payment of coupon income, which was supposed to take place on August 1. According to Fitch’s criteria, this is equivalent to a default,” the agency’s report said.
The debt restructuring carried out by Ukraine is aimed at reducing the debt burden, but it leads to negative consequences for the country’s credit rating. Such a step may complicate access to international financial markets and affect investors’ confidence in Ukraine’s ability to fulfill its obligations.
