Economics
Ukraine Downgraded by S&P as Default Becomes ‘Virtual Certainty’
- Nation was cut to CC from CCC+ on Friday by S&P on debt plans
- Ukraine asked its foreign creditors to defer payments on debt
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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.