S&P raised Ukraine’s rating to CCC+ after debt restructuring

The S&P agency raised Ukraine’s long-term rating in foreign currency from “SD” (selective default) to “CCC+”. The decision was made in connection with the agreement on the restructuring of Ukraine’s debt. This is reported in the information of the agency.

The short-term foreign currency rating was upgraded from “SD” to “C”. Sovereign ratings in the national currency are confirmed at the level of “CCC+” and “C”. The forecast for long-term ratings is stable.

Last week, the Fitch rating agency raised Ukraine’s long-term default rating from “RD” (restricted default) to “CC” (probable default). The rating was updated after the approval request for external debt restructuring on August 11.

It is about a 24-month postponement of the $6 billion payment of principal amount and interest on Ukrainian Eurobonds. 75% of the bondholders (by total principal amount) gave their consent to the restructuring, which exceeds the minimum required of 66.7%.

Earlier, GMK Center wrote, that in mid-August S&P and Fitch lowered Ukraine’s long-term and short-term ratings in foreign currency to SD (selective default) and RD (‘restricted default) respectively.