Ukraine Rating Headed for Default Before Boost, S&P Says on Deal

Ukraine’s debt-restructuring agreement with creditors will probably result in a downgrade of the nation’s sovereign-credit rating to default status before leading to an improvement later, Standard & Poor’s said.

S&P kept Ukraine’s foreign-currency debt at CC, its second-lowest grade, with a negative outlook. When the restructuring begins, the company will re-rate the country SD, then probably raise it when the transaction is complete, it said in a statement Friday. The country is rated Ca by Moody’s Investors Service and C by Fitch Ratings.