Fitch and S&P: Ukraine falls in default over debt restructuring
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Ukraine was downgraded to default scores by both Fitch Ratings and S&P Global Ratings.
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US rating agencies classify Ukraine's debt restructuring as default.
On Friday, US credit rating agencies S&P Global Ratings and Fitch Ratings downgraded Ukraine's foreign currency ratings to selective default and restricted default.
Earlier this week, Ukraine demanded a freeze on payments on $19.6 billion in international debt until 2024. The rating agencies said Ukraine's overseas creditors backed Kiev's request on Thursday.
Read: Fitch downgrades Ukraine’s rating to C
"Fitch Ratings has downgraded Ukraine's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'RD' (restricted default) from 'C'," the agency said in a statement on its website.
Fitch Ratings noted that it deemed as "completion of a distressed debt exchange (DDE)" the postponement of payments on Ukraine's foreign debt until 2024.
"Given the announced terms and conditions of the restructuring, and in line with our criteria, we view the transaction as distressed and tantamount to default," Reuters quoted S&P as saying. The agency lowered Ukraine's foreign currency rating to selective default ("SD/SD") from "CC/C".
According to the report, S&P Global Ratings also downgraded Ukraine's local currency rating to "CCC-plus/C" from "B-minus/B."
