Economics
Ukraine Downgraded by Fitch as ‘Default-Like’ Process Begins
- War-stricken nation this week asked creditors for debt delay
- Fitch lowers nation to C from CCC amid Russia’s invasion
A volunteer repairs the roof of the house of an elderly woman, after being destroyed by shelling in the village of Zalissya, Kyiv region, on 22 July.
Photographer: Sergei Chuzavkov/AFP/Getty Images
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Ukraine was downgraded by Fitch Ratings after the nation began the formal process to defer payments on its external bonds and restructure $22.8 billion in sovereign debt in the wake of Russia’s invasion.
The country’s credit score was lowered to C from CCC on Friday by Fitch, which said the government’s request to postpone foreign-debt payments constitutes a “default-like process.” The rating would be lowered again to RD if the proposal is accepted by creditors -- a move that the firm said is likely.