Page 61 - UKRRptAug22

8.4 International ratings
Ukraine - Rating agency
as of May 1, 2018
last change
Moodys (USD rating)
Caa1 (S)
21/12/18
Fitch (USD rating)
B- (S)
22/7/16
S&P
B- (S)
25/9/15
Ukraine had its credit grade cut by S&P Global Ratings after the war-ravaged nation asked foreign creditors for permission to delay payments on its external debt after Russia’s invasion. The country was downgraded to CC from CCC+ on Friday by S&P, which kept a negative outlook given the high probability that officials move forward with plans to restructure its foreign debt. The rating could be cut again by S&P to selective default if the government in Kyiv gets bondholders to agree to a two- year payment freeze and changes to coupons on its so-called GDP warrants by the middle of next month. “We believe it is virtually certain that the Ukrainian government will stop payments on at least some foreign debt as currently documented,” S&P said in a Friday statement.
Fitch Ratings downgrades Ukraine’s LTFC to ‘high’ risk of default. Credit ratings agency Fitch Ratings forecasts that Ukraine’s economy will shrink 33% in 2022 with a modest recovery of 4% in 2023. It cites Russia’s war as a great stressor on Ukraine’s economy. Ukraine’s rating dropped from a “C” to a “CCC” for its Long-Term Foreign Currency rating, with “default” as the next and lowest possible rating.
Fitch downgrades Ukraine’s long-term rating to C On July 20, the Ukrainian government formally launched a consent solicitation to defer external debt repayments for 24 months. Fitch said it viewed the process as the initiation of a distressed debt exchange (DDE) process, consistent with ratings of 'C' for both the LTFC IDR and affected securities.
61 UKRAINE Country Report XXXX 2018 www.intellinews.com