The ratings agency Fitch announced that it has downgraded Ukraine’s Long-Term Foreign-Currency (LTFC) and Issuer Default Rating (IDR) to “C” from “CCC,” reported TASS. The downgrading follows the Ukrainian government’s July 20 launching of a consent solicitation to defer external debt repayments for 24 months. According to Fitch, it is consistent with ratings of “C” for both the LTFC and IDR and affected securities. Fitch also expects broader restructuring of the government’s commercial debt to be required and reflects severe stresses to Ukraine’s macro-financial position.
The Ukrainian move for suspension of debt payments is backed by its creditors, including Britain, Canada, France, Germany, Japan and the United States, which have called for the suspension of payments until the end of 2023.
