Fitch slices Ukraine to C

Fitch Ratings said it downgraded Ukraine's long-term foreign-currency issuer default rating to C from CCC. Fitch usually does not assign outlooks to sovereigns rated CCC+ or below. The agency removed all of the ratings from under criteria observation.

On Wednesday, the Ukrainian government launched a consent solicitation to defer external debt repayments for 24 months.

“Fitch views this as the initiation of a distressed debt exchange (DDE) process, consistent with ratings of C for both the LTFC IDR and affected securities,” the agency said in a press release.

Fitch said it plans to lower the rating to RD, or Restricted Default, and the affected notes to D after the consent solicitation’s effective date.

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