S&P Global Ratings has lowered Ukraine’s rating amid debt restructuring.

The Rating agency lowered Ukraine’s long-term sovereign credit ratings in foreign currency to negative, from CCC+ to CCC. The downgrade follows Ukraine’s official announcement of a restructure in its external debt in foreign currency to restore public debt sustainability as part of a new $15.6B program with the IMF.

The agency points out that Ukraine suffers from significant macroeconomic and fiscal problems caused by the war. The pessimistic forecast for its long-term rating reflects risks for servicing Ukraine’s commercial debt, S&P said.

In addition, in the next 12 months the agency may lower the ratings if commercial debt obligations are included in the public debt restructuring. Moreover, if obligations are denominated in Ukrainian currency, the hryvnia risks being affected by default or restructuring.

On the other hand, S&P may upgrade Ukraine’s rating if commercial debt is excluded from the proposed restructuring, or if the security situation in Ukraine and medium-term macroeconomic prospects improve.