Early this week, the Fitch rating agency downgraded Ukraine’s long-term credit rating from level C to RD. The $750M 2026 Eurobonds, on which Ukraine failed to make the August 1 coupon payment, were downgraded to level D. These changes were expected and are only temporary, said head of Parliament Committee on Finance Danylo Hetmantsev.
According to him, the downgrade reflects:
- The restructuring procedure for exchanging problematic debt has started.
- Ukraine’s formal omission of the coupon payment for a Eurobond issue, which was supposed to occur on August 1, following the expiration of a 10-day grace period.
Hetmantsev reminded observers that Ukraine is finalizing the debt restructuring agreement for sovereign Eurobonds and guaranteed Ukravtodor bonds. Eurobond holders are now voting, which will last until August 27. After completing all formal legal restructuring procedures, the parliamentarian claimed that Ukraine’s credit rating will again be raised to the CC or CCC level.