International rating agency Fitch Ratings has downgraded Ukraine’s credit rating to ‘C’ from ‘CC’, Reuters reported.
According to the agency, the decision to downgrade the credit rating was taken after Ukraine and holders of Eurobonds reached a decision on restructuring of external debt. This rating assumes that default in the country is inevitable or has already occurred, follows from the publication.
The restructuring will allow Kiev to save $11.4 billion in payments over three years. According to Fitch, the agreement in principle reached on 22 July between the Government of Ukraine and some holders of Eurobonds marks the beginning of a process similar to default.
Earlier, the head of the Verkhovna Rada’s tax committee, Danylo Hetmantsev, said that Ukraine’s public debt increased by 5 per cent in March to 151.1bn dollars.