On Tuesday, Fitch downgraded Ukraine's credit rating to 'Restricted Default' from 'C', citing the expiration of the grace period for the 2026 Eurobonds, Reuters reports, UNN.
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Ukraine has defaulted on its bonds after a law came into effect allowing it to suspend foreign debt payments until October 1. Earlier this month, Ukraine began the process of obtaining bondholder consent to restructure $20 billion in international bonds.
In the wake of Russia's invasion, Ukraine has been pushing hard to restructure its wartime debt as part of its efforts to regain access to international capital markets.
Fitch has maintained Ukraine's local currency (LC) debt rating at 'CCC-' as it expects LC debt to be excluded from the restructuring agreement with external commercial creditors.
The S&P Global rating agency has also downgraded Ukraine's rating to "selective" default effective August 2.
Fitch does not usually assign outlooks to countries with a CCC+ rating or lower.