S&P lowers Ukraine's long-term foreign currency rating to 'CC'

MOSCOW. Aug 1 (Interfax) - S&P Global Ratings has lowered its long-term sovereign foreign currency credit rating assigned to Ukraine to 'CC' from 'CCC+', the agency said in a press release.

The rating outlook is negative.

Ukraine has asked its foreign creditors to agree to defer payments on all external debt obligations by 24 months. As a result of this proposal, S&P believes a default on the sovereign's foreign currency debt is practically inevitable, the agency said.

At the same time, S&P affirmed its 'C' short-term foreign currency, 'B-/B' local currency, and 'uaBBB-' national scale ratings, saying it considered Ukraine's hryvnia-denominated government debt to be less vulnerable to nonpayment.

The agency said the negative outlook reflected high risks for payments to service Ukraine's commercial debt, given the government's plans to restructure the debt.