International rating agency Standard & Poor's (S&P) downgraded Ukraine's long-term credit rating to "SD" (overdue on certain financial obligations, but still has the ability to meet its other commitments on time), the statement said.
„We understand that Ukraine intends to begin a formal restructuring of some of its Eurobonds through an exchange offer. We also understand that the government has decided to freeze payments on the affected bonds while restructuring begins. Accordingly, the government did not pay the coupon yield on the 2026 Eurobonds on August 1, 2024, when payment was due, and we do not expect payment within the 10 business day grace period provided for in the agreement, ” says in the statement.
"We have therefore downgraded our long-term and short-term foreign currency (FC) ratings on Ukraine to "SD/SD" (selective by default) with "CC/C" and ratings for the 2026 Eurobond issue of "D" (default) with "CC". We have also confirmed our "CC" for the remaining priority unsecured debt obligations of Ukraine in foreign currency”, the agency notes.