S&P downgrades Ukraine's credit rating to "selective default"

MOSCOW. Aug 5 (Interfax) - S&P Global has downgraded Ukraine's long-term and short-term foreign currency credit ratings to "selective default," or "SD/SD" from "CC/C" following a missed coupon payment on Eurobonds on August 1 amid debt restructuring, Ukrainian media reported, citing the international rating agency.

"We understand Ukraine intends to launch the formal restructuring of some of its Eurobonds through an exchange offer. We also understand the government has decided to suspend payments on the affected bonds before the restructuring. To that end, the government did not make the coupon payment on its 2026 Eurobond Aug. 1, 2024, when the payment was due, and we do not expect the payment within the bond's contractual grace period of 10 business days," S&P said on its website.

As a result, the agency also downgraded its issue ratings on Ukraine's 2026 Eurobond to "D" (default) from "CC," while affirming its "CC" rating on Ukraine's remaining senior unsecured foreign currency debt issues.

The agency also affirmed its "CCC+/C" local currency (LC) rating and "uaBB" national scale rating for Ukraine.

"We understand Ukraine's hryvnia-denominated government debt is not in scope for debt restructuring. The outlook on the LC rating is stable," the agency said.