Standard & Poor's Ratings Services worsened its long- and short-term foreign currency sovereign credit ratings on Ukraine from “extremely speculative” to “selective default”. At the same time, Standard & Poor's kept hryvnia credit ratings at ССС+ level while giving a negative outlook.
According to the statement of the rating agency, the estimate was lowered on the decision of the Ukrainian government to restructure the national debt. The experts say that as a result of the restructuring, many investors can return fewer funds than it had been stipulated earlier.
Last week Ukraine failed to redeem a US $500 million Eurobond. Ahead of the stated maturity, the Ukrainian authorities announced the restructuring of the national debt and suspended all Eurobond payments which were due this year between September 23 and December 1.
