The international rating agency Fitch Ratings has downgraded Ukraine’s long-term foreign currency Issuer Default Rating (IDR) from the “C” position to the lower “RD” bar – such an assessment indicates the country’s limited default. This is stated on the website of the organisation.
The material emphasises that the international rating agency, as a rule, does not announce forecasts for states with issuer default rating in foreign currency less than the level of “CCC+”. However, the IDR transformation is associated with the end of the 10-day grace period from the start of the coupon payment period on the issue of Eurobonds for 2026 in the amount of 750 million dollars.
Coupon payments, in turn, were due on 1 August. Thus, the current situation demonstrates the beginning of default in accordance with the parameters set by Fitch Ratings in terms of the sovereign IDR.
We shall remind you that on 3 August, US agency S&P Global downgraded Ukraine’s credit rating to “selective default” due to the absence of coupon payments by Kiev.