S&P cuts Ukraine

S&P said it lowered Ukraine’s foreign-currency rating to SD, or Selective Default, from CC and the ratings on its restructured Eurobonds to D from CC. The agency also cut the local-currency and national scale ratings to CCC+ from B- and uaBB- from uaBBB-, respectively.

“The rating action follows the consent of the required majority of Ukraine's commercial creditors to the government's recent proposal to defer debt service payments on its Eurobonds over the next 24 months. We understand that the required majority (as per the bond prospectus) of Ukraine's Eurobond holders have accepted the offer,” S&P said in a press release.

Once the commercial restructuring takes effect, S&P said it would consider the SD cured and could raise the rating.

The agency does not assign outlooks to ratings in SD, but the outlook for the local-currency rating is negative.

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