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S&P Global Ratings on Friday cut Ukraine’s long-term debt grade by three notches, saying the recently announced plan to defer payments means a default is “a virtual certainty.” online news
The agency lowered the rating to “CC” from “CCC+” after the government proposed deferring payments on all external debt obligations by 24 months.
The ratings outlook remains negative which “reflects our view that Ukraine is likely to implement its debt restructuring plans, which we consider tantamount to a default,” the statement said.
A group of Western countries last week gave their green light to Kyiv’s request to postpone interest payments on its debt and called on other creditors to do so as well.
The governments said the postponement of the debt service would allow it to prioritize funding for the war effort.
The group, which includes Britain, France, Germany, Japan and the United States, called on other countries which have lent money to Ukraine to join in the effort, as well as bondholders.
S&P said private bondholders have been asked to vote on the proposal by August 9.
The ratings agency noted that the plan “does not include any debt haircuts and offers some compensation to bondholders” but still would consider the country in default.
hs/bfm
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Notes from APS Radio News
Thus, far the war began in Ukraine in February, the US has provided Ukraine with nearly $60 billion in assistance, much of it in the form of military support.
One of the weapons systems the US has provided is referred to as HIMARS, a mobile rocket-launching system, which can fire missile to a target up to 60 miles distant.
he M142 High Mobility Artillery Rocket System (HIMARS) is a light multiple rocket launcher developed in the late 1990s for the United States Army and mounted on a standard U.S. Army M1140 truck frame.
The launcher can be transported by Lockheed C-130 Hercules aircraft. Both chassis and launcher system are now produced by Lockheed Martin Missiles & Fire Control.
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