Fitch upgrades Ukraine’s long-term credit rating from RD to CC
The international rating agency Fitch has upgraded Ukraine’s long-term issuer default rating in foreign currency from RD to CC. This is reported on website agencies.
The agency’s statement emphasizes that Fitch does not normally set forecasts for sovereign states rated CCC+ or lower.
The upgrade of the credit rating is due to the fact that the holders of Ukraine’s Eurobonds have agreed to the restructuring of the external debt. The agency’s analysts believe this “represents the completion of the distressed debt swap and the elimination of the limited default.”
On Saturday, August 13, the international rating agencies Fitch and S&P downgraded Ukraine’s long-term and short-term foreign currency ratings due to an agreement to defer payments on the country’s external debt until 2024.
The fact that the creditors agreed to freeze payments to Kyiv until 2024 became known on August 10. The total debt is $19.6 billion. The decision to defer payments will allow Kyiv to keep $5.8 billion that should have been paid in debt service.
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