Ukraine Is Now in Default, According to S&P and Fitch

Two global rating agencies, Standard & Poor’s and Fitch, lowered Ukraine’s foreign currency ratings to “selective default” and “restricted default,” respectively, on Friday, Aug. 12, because a recent restructuring by two major Ukrainian state-owned companies of $20 billion in foreign-held debt, was considered “distressed,” i.e., it was forced on the creditors. Earlier this week, state-owned companies Ukrenergo and Ukravtodor “requested” a two-year freeze on payments on almost $20 billion in international bonds, which the creditors had no choice but to agree to.