S&P declared default on Ukraine's GDP-linked warrants

International rating agency S&P Global has lowered the rating of Ukraine's GDP-linked bonds from "CC" to "D" (default), UNN writes, citing the agency's report of June 3.

Details

As noted in S&P, Ukraine missed a payment of USD 0.67 billion on its GDP-linked securities, which was due on June 2, 2025.

"Moreover, we do not expect payment within the contractual grace period for the securities of 10 business days, given the government's moratorium on payments on these bonds, unless they are restructured," the agency said.

"Therefore, we have lowered the issue rating of GDP-linked securities from "CC" to "D" (default)," S&P said.

At the same time, the agency confirmed its foreign currency (FC) ratings for Ukraine at "SD/SD" (selective default) and sovereign credit ratings in national currency (LC) at "CCC+/C".

"The outlook for the long-term sovereign rating in national currency "CCC+" is stable," the statement said.

Addition

As Reuters writes, the Ukrainian government said on Friday it would not make a payment based on 2023 economic performance but would continue to restructure the instrument.