S&P accompanies its assessment with a negative outlook, and considers the default to be “almost certain”.
Credit rating agency S&P on Friday downgraded Ukraine’s long-term credit rating by three notches to CC, saying a deal recently struck with several Western countries to extend Kiev’s debt obligations amounted to an “almost certain” default. .
“Ukraine has asked its foreign creditors to extend by 24 months payments on all of its external debt,” S&P said in a press release.
“Following this request, our view is that the declaration of default on debt denominated in foreign currencies is almost certain,” the rating agency clarifies.
A group of Kiev’s Western creditors — including France, the US, Germany, Japan and the UK — approved on July 20 the postponement of interest payments on Ukrainian debt at Ukraine’s request, urging other foreign creditors holding the country’s debt. to do the same.
The new rating comes with a negative outlook, which reflects “our view that Ukraine (…) will implement its plans to restructure its debt, which we view as a default,” S&P added.
The house had already downgraded Ukraine’s credit rating on May 27 to CCC+, also with a negative outlook, due to “the serious consequences of the Russian military attack”, explaining that it assumed that “the Russian-Ukrainian military conflict will be prolonged”.
Russia’s military invaded Ukraine on February 24.
RES-EMP
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